New software has been developed, and $23 000 has been spent on its development. However, the implementation phase requires an additional $30 000. There is uncertainty about annual net revenue. Three potential scenarios with their probabilities of occurring were identified., as shown in the following table:
Assume a 10% MARR and use a decision tree to answer the following question: What is the expected PW for deciding whether or not to proceed?

Question

New software has been developed, and $23 000 has been spent on its development. However, the implementation phase requires an additional $30 000. There is uncertainty about annual net revenue. Three potential scenarios with their probabilities of occurring were identified., as shown in the following table:
  Assume a 10% MARR and use a decision tree to answer the following question: What is the expected PW for deciding whether or not to proceed?

Quizplus · Accepted Answer

The Answer of New software has been developed, and $23 000 has been spent on its development. However, the implementation phase requires an additional $30 000. There is uncertainty about annual net revenue. Three potential scenarios with their probabilities of occurring were identified., as shown in the following table:
  Assume a 10% MARR and use a decision tree to answer the following question: What is the expected PW for deciding whether or not to proceed?

New Software Has Been Developed, and $23 000 Has Been