Problem: A producer intends to develop its product line and must decide whether to build a small or large factory to produce new products. If it builds a small facility and demand is low, the net present value will be $420,000. If a large factory is built and demand is high, the estimated net present value is $50,000. If demand turns to be low, the net present value will be -$15,000. The probability that demand will be high is estimated to be 0.55. Determine the best alternative considering the expected value.