Business
Business, 20.02.2020 06:54, NateTheBeast12

If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 110 comma 000 units at $580 each, with a probability of 0.65 and a 0.35 probability of 65 comma 000 at $580. If, however, he uses the value analysis team (option b), the firm expects sales of 85 comma 000 units at $740, with a probability of 0.62 and a 0.38 probability of 60 comma 000 units at $740. Value engineering, at a cost of $100 comma 000, is only used in option b. Which option has the highest expected monetary value (EMV)?

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