Please use this information for the next 3 questions. (this page is for information only... your browser may prompt you for an answer... but the 3 questions will follow this information) You are managing a project to create a new product for your company. You have come to a point in the project where there has been an unexpected challenge come up, where you are going to have to redesign one component of the assembly. You have come up with 3 options: - You could terminate the project. In order to terminate the project you will have to pay the designers a fee to end their contracts early. This is a 100% chance of happening, if you terminate the project. - You could take internal engineers from other product lines and use their time to complete the redesign. If you use your internal engineers there is a 60% chance of success, because this is not their core area of expertise, but they are very competent engineers and if successful will create $60,000 in revenue. If you use your internal engineers, there is a 10% chance that they will badly fail at your project and cost you $50,000 because you will be left paying for consultants to clean up their efforts. There is also a 30% chance that they will succeed, however you will see less of a return at $20,000 because it will take them longer to get the product to market, which will cost you sales. - You could hire contractors to complete the redesign. They will have a good chance of success at 75%, because of their specific expertise in this area. This option will yield $40,000 because the contractors are slightly more expensive than our personnel. There is also a 25% chance that it will take the contractors a long time to do the redesign due to a couple tricky situations, which would cause the project to lose $20,000 due to the extra time that will be invested. You have decided to make your decision in this situation based on the Expected Monetary Value of the outcome. You created the chart below: Probability (P) Outcome EMV P=1.0 -$20,000 EMV A Terminate $60,000 EMVB P=0.6 Decision Internal SME's P=0.1 -$50,000 EMVC P-0.3 $20,000 EMVD Contractor P=0.25 -$20,000 EMVE P=0.75 $40.000 EMVE Please use the information provided above to complete the answers below: Probability Outcome EMV Pen. -$20,000 EMVA Terminate $60,000 EMVB P06 Decision Internal SME's P=0.1 -$50,000 EMVC P03 $20,000 EMVD Contractor P=0.25 -520,000 EMVE P=0.75 $40,000 EMV EVMA [ Choose EVMB [ Choose EVMC [ Choose] EVMA [Choose] > EVMB EVMC EVMD [Choose] $10,000 $50,000 -$6,000 $30,000 -$10,000 $40,000 $60,000 -$5,000 $36,000 $2,000 $6,000 -$50,000 -$20,000 -$2,000 EVME EVME