Question: The Aegean Company is using a legacy software. However some influential stakeholders believe that by upgrading this software your company can save money, while others

The Aegean Company is using a legacy software.

The Aegean Company is using a legacy software. However some influential stakeholders believe that by upgrading this software your company can save money, while others feel that staying with the legacy software is the safest option, even though it is not meeting the current company needs. The stakeholders supporting the upgrade of the software are further split into two factions: those that support buying the new software and those that support building the new software in-house. Each three scenario alternative will lead to either a successful deployment or an unsuccessful one. The scenario options and market deployment assessments for these alternatives are given below. Based on this information; Scenario Options Market Deployment Investment Code Alternative Cost Revenue Deployment Probability (1000TL) (1000TL) Successful 0,5 800 A Stay with the legacy software 400 Unsuccessful 0,5 500 Successful 0,6 2000 Build the new software 800 Unsuccessful 0,4 400 Successful 0,7 2400 Buy the new software 1400 Unsuccessful 0,3 300 B a. (8 pts) Draw the decision tree, b. (10 pts) Find the expected monetary value (EMV) of each alternative. c. (2 pts) Which scenario alternative should be selected? Why

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