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1. Use the following information below to decide whether you should build the application inhouse or outsource it; Pick the decision with the lower investment

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1. Use the following information below to decide whether you should build the application inhouse or outsource it; Pick the decision with the lower investment required: Cost to build application in-house $9 5.000 Cost to outsource the task of developing the application $80,000 Probability of passing user acceptance testing it built in-house 00% Probability of passing user acceptance testing if work is 30% outsourced Cost of rework after user acceptance testing it built in-house $50000 Cost of rework after user acceptance testing it work is $25000 outsourced 2. Create a decision tree to show outcomes for each decision node using the SilverDecisions website MpilverdecisionsplzSi|verDecisions.html?|ang}. Note: While the SilverDecisions tool is intuitive, you can nd a manual at h_ttp:f_,1'si|verdecisions.p_|. Based on your calculation of the expected value of each outcome, tell us what decision you'd make {and why). Be sure to tell us why you did not choose the other options

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