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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
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 (b) having the value analysis team complete a study. engineering, at a cost of $85,000, is only used in option b. Which option has the highest expected monetary value (EMV)? The EMV for option a is : and the EMV for option b is . Therefore, option has the highest expected monetary value. (Enter your responses as integers.)
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