​Use the Following Information for Question

question 83

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.
-​The firm learns that the probability of launch estimated for the voice activated software was too optimistic and instead is actually 65%.Is it still worth for the company to develop the simplified software?

• A)​No,because the expected return is lower
• B)No,because the expected return is higher
• C)Yes,because the expected return is higher
• D)​Yes,because the expected return is lower

---

Definitions:

Scrotum

The pouch of skin and muscle that houses the testicles in males, regulating temperature for optimal sperm production.

Endodermal

Pertaining to the innermost layer of the three primary germ layers in the very early embryo, which gives rise to the digestive and respiratory systems among others.

Ectodermal

Pertaining to the ectoderm, the outermost layer of the embryo, giving rise to the nervous system, skin, and various sensory organs.

Germ Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo from which all tissues and organs develop.