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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.
-​What is the expected revenue from developing the simplified software?


Definitions:

Organizational Effectiveness

The measure of a organization's ability to achieve its goals and objectives in an efficient and productive manner.

Satisfied Customers

Customers who have their needs and expectations met or exceeded by a company's products or services, which often leads to repeat business and positive word-of-mouth.

Bottom-line Profits

The net income a company earns after all expenses and taxes have been deducted from total revenue.

Organization Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

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