Project Management - Given the following Decision Tree, perform decision tree analysis to determine which is best to do, make or buy a software application as part of a development project? Remember that this requires the use of EMV

How do you calculate EMV for this problem to derive the conclusion to make or buy?

Exercise 2: Given the following Decision Tree, perform decision tree analysis to determine which is best to do, make or buy a software application as part of a development project? Remember that this requires the use of EMV. Profit $50,000 30% Make 30% Simple Build Cost $23,000 40% Difficult Build Cost $34,000 System Minor Changes $17,000 40% Buy 15% Major Changes $35,000 45% Profit $35,000 What is the EMV equation? Should you make or buy the system? Hint: When calculating the EMV, make sure profits are calculated as positive (+) values and losses are calculated as negative (-) values