What is the emv for the outsource option

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Assignment:

A company is deciding if it should design a product in-house or outsource the design. If outsourced, the cost for a low bidder would be $38,000, and the cost for an expensive bidder would be $100,000. To design in-house would require overtime for an already stretched design team with total costs of 477,000. If all three designs (in-house, low bid, high bid) are equal in quality and the likelihood of finding a low bidder is 44% (meaning that 56% of the time the firm will have to hire the expensive bidder), what is the EMV for the outsource option? What is the EMV for the in-house option?

Reference no: EM133436139

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