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Business, 25.10.2019 21:43 lindsay1054

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 $510510 each, with a probability of 0.370.37 and a 0.630.63 probability of 65 comma 00065,000 at $510510. if, however, he uses the value analysis team (option b), the firm expects sales of 80 comma 00080,000 units at $720720, with a probability of 0.630.63 and a 0.370.37 probability of 65 comma 00065,000 units at $720720. value engineering, at a cost of $85 comma 00085,000, 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. the

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Macdonald products, inc., of clarkson, new york, has the option of (a) proceeding immediately with p...
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