Insert Page Layout Data View 91 ECTID Become you to H Periodo 0 Period 1 N o - Period 2 10% 10% Moon Microsof servers and is open mare demano grow rapon the next two years Specially they expectance of an by and chance of ang for men wo years Current 10.000 rsand Moon Micro sporting Ty recogng server con Sondy Moe we coon 3.000 for en per a $25.00 Ted cost in penedolor congement they need as There was 315.000 and the waters .000 Does outling to come como a PM the To IV Contacto D=10,000 Crossfadan Os period what you can O Moon Micro is a manufacurer of servers and is expecting market demand to grow rapidly in the next two years. Specifically they expect there is an 80% chance of demand increasing by 50% anf 20% chance of it inreasing 10% for the next two years. Current demand is 10,000 servers and Moon Micro is operating at 100% capacity. They are considering outsourcing server production to a contract assembler, Molectron to fill additional capcity. Molectoron will charge Moon Micro $3,000 for each server it assembles plus a $25,000,000 fixed cost in period o for manufacuring equiment they will need to add The selling price of a server is $15,000 and the raw material costs are $8,000 Does outsourcing to Molectron make ecomonic senese (i.e. does it have a positive NPV? Use 10% for the NPV discount factor Enter the demand values and probabilites for the states of nature in the decision tree. Calculate the economic outcomes of the states of nature and obtain a NPV for the base node in period o. What is your conclusion. I am only asking you to evaluate one alternative, that is outsourcig versus do nothing A D E H M B Period 0 G Period 1 Period 2 10% 10% D=10,000 States NatureOutSource