Scenario B: Suppose the repairs for the old grader had the same probabilities as above but were

$$4,000$ for major repairs, $$3,000$ for minor repairs, and $$0$ for no repairs.

$6.$ Would this change your decision about the best lease option based on an EMV analysis?

$($Yes$/$No$)$ No

Why$/$Why Not? The amount needed to lease the newer grader is still lower than the amount

needed to lease the older grader.

$7.$ What is the maximum that you would pay the experienced mechanic for her perfect

assessment $($based on the EVPI$)?$ $$0$

How did you derive this value? Finding the difference of the cost of the lease of the older

grader and the newer grader.

$8.$ Suppose the company decides not to hire the experienced mechanic, and is unwilling to pay

more than $$11,000$ for the grader under any circumstances. Would this change the decision

about which grader to lease? $($Yes$/$No$)$ No

Why$/$why not? The cost to hire Newer grader is still lower than hiring the older grader.