Discuss the below:
Q: MacDonald Products, Inc., of Clarkson, New York, has the option of proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or 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 $600 each, with a probability of 0.38 and a 0.62 probability of 60,000 at se00. If, however, he uses the value analysis team (option b), the firm expects sales of 90,000 units at $700, with a probability of 0.64 and a 0.36 probability of 65,000 units at $700. Value engineering, at a cost of $115,000, is only used in optionb. Which option has the highest expected monetary value (EMV)?