Question: 4) Problem #4: (4 Points) Show your work.... The Blue Arrival company is trying to decide if they want to replace a production unit or

4) Problem #4: (4 Points) Show your work.... The
4) Problem #4: (4 Points) Show your work.... The Blue Arrival company is trying to decide if they want to replace a production unit or overhaul it. The replacement cost is $25,000 and the overhaul cost is $5,000. There is an 80% probability that the new machine will generate an additional $40,000 in revenue, a 15% probability the additional revenue will be $20,000 and a 5% likelihood of $10,000 in new revenue being generated. An overhaul of the older machine will allow the company to generate only the additional revenues noted above compared to the new machine. Given this information, which choice will be the better option? Why

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