?A company is considering the development and marketing of a new product. Development?costs will be $2m.? There is a 75% probability that the development effort will be successful,?and a 25% probability that it will be unsuccessful. If development is successful and the?product is marketed, it is estimated that:??
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Expected profit? ? ? ? ? ? ? ? ? ? ? ? ?Probability? ? ? ? ? ? ? ? ? ?
Product very successful? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? $6.0m? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?0.4?
Product moderately successful? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?$1.8m? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?0.4?
Product unsuccessful? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ($5.0m)? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 0.2?
What is the expected value of the project??