Phillip? Witt, president of Witt Input? Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to? hurricanes, tornadoes,? flooding, and? earthquakes, Phillip believes that the probability in any year of a? "super-event" that might shut down all suppliers at the same time at least 2 weeks is 2%. Such a total shutdown would cost the company approximately ?$450,000. He estimates the? "unique-event" risk for any of the suppliers to be 5%. Assuming that the marginal cost of managing an additional supplier is $14,800per? year, how many suppliers should Witt Input Devices? use? Assume that up to three nearly identical local suppliers are available.
Find the EMV for alternatives using? 1, 2, or 3 suppliers.
?EMV(1) = $ ____?(Enter your response rounded to the nearest whole? number.)