Transcendent Technologies is deciding between developing a complicated thought- activated software, or a simple voice-activated software. Since the thought-activated software is complicated, it only...


Transcendent Technologies is deciding between developing a complicated thought-<br>activated software, or a simple voice-activated software. Since the thought-activated<br>software is complicated, it only has a 30% chance of actually going through to a successful<br>launch, but would generate revenues of $50million if launched. The voice-activated<br>software is simple and hence has a 80% chance of being launched but only generates a<br>revenue of $10million. The complicated technology costs 10million, whereas the simple<br>technology costs 2 million.<br>What is the expected profit from developing the complicated software?<br>$10 million<br>$15 million<br>$20 million<br>$5 million<br>

Extracted text: Transcendent Technologies is deciding between developing a complicated thought- activated software, or a simple voice-activated software. Since the thought-activated software is complicated, it only has a 30% chance of actually going through to a successful launch, but would generate revenues of $50million if launched. The voice-activated software is simple and hence has a 80% chance of being launched but only generates a revenue of $10million. The complicated technology costs 10million, whereas the simple technology costs 2 million. What is the expected profit from developing the complicated software? $10 million $15 million $20 million $5 million

Jun 11, 2022
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