Planet corporation acquired 90 percent of saturn company’s voting shares of stock in 20x1. during 20x4, planet purchased 40,000 playday doghouses for $24 each and sold 25,000 of them to saturn for $30 each. saturn sold 18,000 of the doghouses to retail establishments prior to december 31, 20x4, for $45 each. both companies use perpetual inventory systems.

Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?