Tremblay Products, Inc., of Quebec City, 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. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 100 000 units at $550 each, with a probability of .6 and a .4 probability of 75 000 at $550. If, however, he uses the value analysis team (option b), the firm expects sales of 75 000 units at $750, with a probability of .7 and a .3 probability of 70 000 units at $750. Value analysis, at a cost of $100 000, is used only in option b. Which option has the highest expected monetary value (EMV)? PX