423Quantitive Business Anaylysis MGMT 306 Student Name: Homework Assignment 4/20/2021 - 40 pts total Email: - Use this form to submit your answers - STATES OF NATURE FILL IN THE EMV from Q2. 5pts. FAVORABLE UNFAVORABLE EMV MARKET MARKET ALTERNATIVE ($) ($) (s) Uyg1 $-245,000 ? Improve current series $250,000 $-85,000 ? License current technology $375,500 $75,000 ? Probability .75 25 Select either to Build, Improve or License, show your work Q1. What is EMV and what's the formula? (5pts) Q2. What is the EMV for each choice and which decision would you choose? Show your work (10pts) Build EMV = Improve EMV = License EMV = Q3. What is EVwPl and EVPI? (5pts) Added Resources Video EVPI EVwPI Q4. What is the EVPI for the choices, is the cost of the information worth $75,000? Show your work (15pts) 1", calculate the EVwPI = EVPI = EVwPl-Maximum EMV