Consider the newsvendor problem, but unsold inventory at the end of the day can be salvaged for $10. Suppose each item cost $25 and is sold for $50 i.e., each item sold results in $50 $25 = $25 profit and each unsold item results in $25 $10 loss. 1. Explain how the optimal order quantity that maximizes expected profit can be obtained. Hint: Recall how we obtained Q* for the zero-salvage version of this problem. 2. Suppose daily demand is equally likely to be between 50 and 100. Using your solution to Question 1, determine the optimal order quantity that maximizes expected profit. 3. Simulate the problem described in Question 2 and verify that the proposed order quantity maximizes expected profit. Hint: Excel function RANDBETWEEN can be used to generate a random number that is equally likely to take any value between a user specific upper and lower bound. 4. Suppose daily demand is described by a normal distribution with mean 50 and standard deviation 5. Using your solution to Question 1, determine the optimal order quantity that maximizes expected profit. 5. Simulate the problem described in Question 4 and verify that the proposed order quantity maximizes expected profit. Hint: Excel function NORM.INV returns the quantile function of a normal distribution.