Question: De Leon Engineering designs and constructs ar condisoning and heating (HVAC) systems for hospitais and cinics. Currently the companys start is overioaded with design work.

 De Leon Engineering designs and constructs ar condisoning and heating (HVAC)

De Leon Engineering designs and constructs ar condisoning and heating (HVAC) systems for hospitais and cinics. Currently the companys start is overioaded with design work. There is a major design project due in 9 weeks. The penaity for completing the design lave is $13,000 per week, since any delay wit cause the facily to open later than anticipated, and cost the client significant revenue. It the company uses its inside engineers to complete the design, a wel tave to pay them overtime for al work. Owner Roberta De Lech has estimated that it wil cost $10,000 per week (wages and overhead), including lite weeks, to have company engineers complete the design. Foberta is also considering having an outside engineering firm do the design. A bid of $90,000 has been received for the completed design. Yet another option for completing the design is to conduct a joint design by having a third engineering company complete al electromechanical components of the design at a cost of 560,000 . De Leon Engineering would then complete the rest of the design and control systems at an estimated cost of $28,000. Roberta has estimated the following probabilies of completing the project within various tme frames when using each of the three options. Those estimates are shown in the following table: The expected monetary value using inside engineers to complete the design is : (Enter your response as an integer.) The expected monetary vatue using an outside engineering firm to complete the design is I (Enter your response as an inieger) The expected monetary value of conducting a joint design is : (Enter your response as an integer.) What is the best decision based on an expected monetary value criterion? External engineering firm Internal engineers Joint design

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