Problem # 8 , please help in Excel with solutions and conclusion.

005) 56 18 67 23 9 20 I (IN 000s) 2 (IN 0005) 55 44 32 Plastic 90 16 15 17 Plastic 180 55 50 64 Plastic 360 15 11 18 Bronze 90 5 6 6 Bronze 180 15 Bronze 360 17 16 What are the capacity implications of the marketing campaign (assume no 6. In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine. Will this be enough to ensure that adequate capacity is available? 7. Suppose that operators have enough training to operate both the bronze learning -3 machines and the injection molding machine for the plastic sprinklers. Currently, AlwaysRain has 10 such employees. In anticipation of the ad campaign described in problem 5, management approved the purchase of two additional bronze machines. What are the labor requirement implications? 8. Expando, Inc. is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $6 million. If demand for new products is low, the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $12 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $9 million. Were demand to be low, the company would expect $10 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $14 million. In either case, the probability of demand being high is .40, and the probability of it being low is 0.60. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Construct a decision tree to help Expando make the best decision. a