Develop a decision tree to maximize Ventrons expected monetary value (EMV).

This includes the revenue from this project, the side benefits (if applicable) from an improved extrusion process, and relevant costs.

You dont need to worry about time value of money; that is, no discounting or net present values are required.

Summarize your findings in words in the spreadsheet.

CASE 6.4 Developing a Helicopter Component for the Army The Ventron Engineering Company has just been awarded a $2 million development contract by the U.S. Army Aviation Systems Command to develop a blade spar for its Heavy Lift Helicopter program. The blade spar is a metal tube that runs the length of and provides strength to the helicopter blade. Due to the unusual length and size of the Heavy Lift Helicop- ter blade, Ventron is unable to produce a single-piece blade spar of the required dimensions using existing extrusion equipment and material. The engineering department has prepared two alternatives for developing the blade spar: (1) sectioning or (2) an improved extrusion process. Ventron must decide which process to use. (Backing out of the con- tract at any point is not an option.) The risk report has been prepared by the engineering department. The information from this report is explained next.