Question: Sox Engineering designs and constructs air conditioning and heating (HVAC) systems for hospitals and clinics Currently the company statis overloaded with design work. There is

Sox Engineering designs and constructs air
Sox Engineering designs and constructs air conditioning and heating (HVAC) systems for hospitals and clinics Currently the company statis overloaded with design work. There is a major design project due in 7 weeks. The penalty for completing the design late is $15.000 per week since any dolay will cause the facility to open later than anticipated, and cost the client significant revenue. If the company uses its inside engineers to complete the design, it will have to pay them overtime for all work. Sox has estimated that it will cost $12,000 per week (wages and overhead), including late weeks to have company engineers complete the design Sox is also considering having an outside engineering tin do the design Abid of $82,000 has been received for the completed design. Yat another option for completing the design is to conduct a joint design by having a third engineering company complete all electromechanical components of the design at a cost of $56 000 Sox would then complete the rest of the design and control systems at an estimated cost $32,000 Sox has estimated the following probabilities of completing the project within various time frames when using each of the the options. These times are shown in the following tablo, Probability of Completing the Design Option On Time One Week Late Two Weeks Late Three Weeks Late Internal Engineers 03 0.5 0.2 External Engineers 0.1 04 04 01 Joint Design 02 04 03 01 The expected monetary value using inside engineers to complete the design is (Enter your response to an integer) The expected monetary value ning an outside engineering firm to complete the design is (Enter your response as an ege) The expected monetary value of conducting a joint design in (Enter your sponse as anwege) What is the best decision based on an expected monetary value criterion

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