In: Finance
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.