Business, 01.07.2019 18:10 olallaaguirre

Macdonald products, inc., of clarkson, new york, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo tv that has just completed prototype testing or (b) having the value analysis team complete a study. if ed lusk, vp for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 80 comma 00080,000 units at $520520 each, with a probability of 0.590.59 and a 0.410.41 probability of 75 comma 00075,000 at $520520. if, however, he uses the value analysis team (option b), the firm expects sales of 85 comma 00085,000 units at $700700, with a probability of 0.660.66 and a 0.340.34 probability of 65 comma 00065,000 units at $700700. value engineering, at a cost of $120 comma 000120,000, is only used in option b. which option has the highest expected monetary value (emv)? the emv for option a is $nothing and the emv for option b is $nothing. therefore, option ▼ a b has the highest expected monetary value. (enter your responses as integers.)

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