Read Case 6.4, "Developing a Helicopter Component for the ARMY" in your course text.

For Part 1 of this assignment, using an Excel spreadsheet,

• Develop a decision tree to maximize Ventron's expected monetary value (EMV).
  • This includes the revenue from this project, the side benefits (if applicable) from an improved extrusion process, and relevant costs.
  • You don't need to worry about time value of money; that is, no discounting or net present values are required.
• Summarize your findings in words in the spreadsheet.

For Part 2 of this assignment, in a one to two page paper,

• Determine what value of side benefits would make Ventron indifferent between the two alternatives.
• Evaluate how much Ventron would be willing to pay, right now, for perfect information about both steps of the improved extrusion process.