A company must choose between two manufacturing approaches. The figures below are gross outcomes before implementation cost. Option A costs $1M to implement with 60% probability of $3M profit and 40% probability of a $500K loss. Option B costs $800K with 50% probability of $2.5M profit and 50% probability of $200K profit. What is the net EMV of the better option?

PMI-RMP Question 162: A company must choose between two manufacturing…

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