Reference no: EM132279553

Sox Engineering designs and constructs air conditioning and heating? (HVAC) systems for hospitals and clinics. Currently the? company's staff is overloaded with design work. There is a major design project due in 7 7 weeks. The penalty for completing the design late is ?$ 13 comma 000 13,000 per? week, since any delay will cause the facility to open later than? anticipated, and cost the client significant revenue. If the company uses its inside engineers to complete the? design, it will have to pay them overtime for all work. Sox has estimated that it will cost ?$ 13 comma 000 13,000 per week? (wages and? overhead), including late? weeks, to have company engineers complete the design. Sox is also considering having an outside engineering firm do the design. A bid of ?$ 82 comma 000 82,000 has been received for the completed design. Yet another option for completing the design is to conduct a joint design by having a third engineering company complete all electromechanical components of the design at a cost of ?$ 54 comma 000 54,000. Sox would then complete the rest of the design and control systems at an estimated cost of ?$ 32 comma 000 32,000. Sox has estimated the following probabilities of completing the project within various time frames when using each of the three options. Those estimates are shown in the following? table: Probability of Completing the Design Option On Time One Week Late Two Weeks Late Three Weeks Late Internal Engineers 0.4 0.4 0.5 0.5 0.1 0.1 long dash — External Engineers 0.2 0.2 0.5 0.5 0.2 0.2 0.1 0.1 Joint Design 0.1 0.1 0.3 0.3 0.3 0.3 0.3 0.3 The expected monetary value using inside engineers to complete the design is ?$ nothing . ?(Enter your response as an integer.?)