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 Revenue Deployment Probability (1000TL) Code Investment Cost (1000TL) Alternative Stay with the legacy software 200 0,5 0,5 900 400 0,6 1500 B Build the new software 700 Successful Unsuccessful Successful Unsuccessful Successful Unsuccessful 300 0,4 0,7 0,3 2200 Buy the new software 1000 200 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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