Question: E Homework: Chapter 5 Homework Question 6, Problem 5.19 3 HW Score: 30%, 4 of 6 points O Points: 0 of 1 Save MacDonald Products,

E Homework: Chapter 5 Homework Question 6,
E Homework: Chapter 5 Homework Question 6, Problem 5.19 3 HW Score: 30%, 4 of 6 points O Points: 0 of 1 Save 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 Ed Lusk, VP for operations, proceeds with the existing prototype (optiona), the firm can expect sales to be 95.000 units at 5610 each with a probability of 0 21 and a 079 probability of 65.000 at 5610 If however he uses the value analysis team (option), the firm expect sales of 75,000 units at S730, with a probability of 0.68 and a 32 probability of 65,000 units at $730. Value engineering at a cost of $85,000, is only used in option b. Which option has the highest expected monetary ve(EMV? The EMV for option a is and the EMV for option is Theraforo, option has the highest expected monetary value (Enter your responses aindegers)

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