10:22 605 PM, Apr 17 Call 91% K . . . ok wr UTK Catalog LSAT Prep RS RS + Schedule Turni Help Last edit was 15 minutes ago 10 + BIU A GO P O . = = = 1 Wildcat Software Consulting was hired to help Fulton Publishing Group make changes to their or tracking software. They identified three options for Fulton to consider: Keep the legacy software Build new software Buy and install a new, third-party software package If Fulton decides to keep the legacy software, they are expected to incur costs due to maintenanc $100,000. Building new software will cost $500.000. Purchasing and installing a new, third-party software package will cost $750,000. Factors to consider: Building or buying new software is expected to lead to either a successful deployment or an unsuccessful deployment. If the deployment is successful, the cost impact is ze because the risk of an unsuccessful deployment did not materialize. If the deployment is unsucces the impact will be $2,000,000. The risk of an unsuccessful deployment if they build is 40% The risk of an unsuccessful deployment if they buy the software is only 5% If they stay with the Legacy version, their risk is $2,000,000 because their current softw not meeting their needs. Using the decision tree method, answer the following questions. This question is different than the o we did in class because we are evaluating the net cost of the risk- not the net revenue payoff. 1. What is the Expected Monetary Value of sticking with the current Legacy platform? $2,100,000 2. What is the Expected Monetary Value of building new software? $500,000 3. What is the Expected Monetary Value of buying new software from a third-party vendor? $750,000 Search inside screenshot X Share Edit Lens Delete Save Share O m