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a manager is trying to decide whether to buy one machine or two. if only one is purchased and demand proves to be​ excessive, the second machine can be purchased later. some sales will be​ lost, however, because the lead time for producing this type of machine is six months. in​ addition, the cost per machine will be lower if both are purchased at the same time. the probability of low demand is estimated to be . the​ after-tax net present value of the benefits from purchasing the two machines together is ​$ if demand is low and ​$ if demand is high. if one machine is purchased and demand is​ low, the net present value is ​$. if demand is​ high, the manager has three options. doing nothing has a net present value of ​$​; ​subcontracting, ​$​; and buying the second​ machine, ​$.

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