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proves to be excessive, the second machine can be purchased later. Some sales will be lost, however, because the lead time for producing this type of machine is six months. In addition, the cost per machine will be lower if both are purchased at the same time. The probability of low demand is estimated to be 0.20 . The after-tax net present value of the benefits from purchasing the two machines together is $90000 if demand is low and $180000 if demand is high. If one machine is purchased and demand is low, the net present value is $120000. If demand is high, the manager has three options. Doing nothing has a net present value of $120000; subcontracting, $160000; and buying the second machine, $140000. What is the expected payoff for the best decision? 10. Johnson Cogs wants to setup a line to serve 60 customers per hour. The work elements and their precedence relationships are shown in the following table. Draw the precedence diagram and find the cycle time. Suppose that he can balance the line with a solution requiring five stations. What is the efficiency of such a balance? proves to be excessive, the second machine can be purchased later. Some sales will be lost, however, because the lead time for producing this type of machine is six months. In addition, the cost per machine will be lower if both are purchased at the same time. The probability of low demand is estimated to be 0.20 . The after-tax net present value of the benefits from purchasing the two machines together is $90000 if demand is low and $180000 if demand is high. If one machine is purchased and demand is low, the net present value is $120000. If demand is high, the manager has three options. Doing nothing has a net present value of $120000; subcontracting, $160000; and buying the second machine, $140000. What is the expected payoff for the best decision? 10. Johnson Cogs wants to setup a line to serve 60 customers per hour. The work elements and their precedence relationships are shown in the following table. Draw the precedence diagram and find the cycle time. Suppose that he can balance the line with a solution requiring five stations. What is the efficiency of such a balance