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Q5: (weight 10%) Draw a decision tree and use the Estimated Monetary Value (EMV) method to select the best company to execute the project with
Q5: (weight 10%) Draw a decision tree and use the Estimated Monetary Value (EMV) method to select the best company to execute the project with the data given in the following table. [10 marks) Data necessary for the EMV evaluation in 25. Value General project Total Project Budget $100,000 Delay penalty per data $1,000 day Alternative Project Execution companies Cost valuel: Probability: $80,000 0.80 Cost value2: Probability: $90,000 0.20 Company 1 Schedule on Time 0.95 probability Schedule on time 0.05 probability Delay 2 Days Cost valuel: Probability: $70,000 0.60 Cost value2: Probability: $80,000 0.40 Company 2 Schedule on Time 0.80 probability Schedule on time 0.20 probability Delay 20 Days
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