Question: Need Help With this problem, please. Thank you! MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with production of

Need Help With this problem, please. Thank you!

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 (by having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 85,000 units at $560 each, with a probability of 0.64 and a 0.38 probability of 75,000 at 5560. If, however, he uses the value analysis team (option b), the firm expects sales of 85.000 units at $700, with a probability of 0.69 and a 0.31 probability of 70,000 units at $700. Value engineering, at a cost of $120,000, is only used in option b. Which option has the highest expected monetary value (EMV)? The EMV for option a is and the EMV for option bis S . Therefore, option V has the highest expected monetary value. (Enter your responses as integers.)

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