Business
Business, 13.06.2020 18:57, ling95

MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 120 comma 000 units at $510 each, with a probability of 0.77 and a 0.23 probability of 70 comma 000 at $510. If, however, he uses the value analysis team (option b), the firm expects sales of 80 comma 000 units at $710, with a probability of 0.73 and a 0.27 probability of 65 comma 000 units at $710. Value engineering, at a cost of $90 comma 000, is only used in option b. Which option has the highest expected monetary value (EMV)?

answer
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 20:50, arturocarmena10
Which of the following is an example of a monetary policy? a. the government requires credit card companies to protect customers' privacy. b. the government restricts the amount of money that banks can lend. c. the government lowers taxes and increases spending. d. the government pays for repairing damage from a natural disaster.
Answers: 1
image
Business, 22.06.2019 22:00, meramera50
Only the united states has embassies. true or false
Answers: 2
image
Business, 23.06.2019 00:30, aek02
You get your monthly banking statement and notice that the number is lower than expected. you decide that you should create a cash flow statement. why are cash flow statements useful in managing money? what are the steps in creating a statement?
Answers: 1
image
Business, 23.06.2019 02:30, Arealbot
George retired from a local law firm and then volunteered to oversee a nonprofit's legal records. george is performing the duties of a:
Answers: 1
Do you know the correct answer?
MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with p...

Questions in other subjects:

Konu
Mathematics, 21.01.2021 05:20