Multiple Choice
Use the following information for question
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 2million.
-If the firm can only afford developing one of the software,which one would it rather develop (based on expected profit/gain)
A) The simple voice-activated software
B) The complicated thought-activated software
C) Neither of the software
D) Need more information
Correct Answer:
Verified
Correct Answer:
Verified
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