The senior management team has solicited your input on a project decision. They are trying to decide between two different projects that will need completed at the same time. The projects are discussed below:
Project 1: Kansas Data Center
MOTU INC. needs a new data center constructed and has selected some land they already own in Kansas. The land had previously been used as a chemical manufacturing facility. It is estimated that you have a 30% chance of winning the bid on this project, however, before you can submit a bid you have to survey the land and propose system architecture for the facility. You anticipate that these activities will cost about $70,000. If the project goes well, your company will make a $250,000 profit.
Project 2: Florida Data Center
Remle and Company wants to build a data center in Florida on previously undeveloped land near the Everglades. You anticipate a 20% chance of winning this project and realizing a $175,000 profit. A land survey and system design plan will cost about $60,000.
Either project would use the same personnel from your company:
It is rumored that Lisa wants the Florida project (Project 2) to move forward and that she owns some of the proposed land the project will use. Dennis, on the other hand, plays golf with the owner of MOTU INC. on occasion and thinks the Kansas project (Project 1) should move forward.
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