Arrow Cosmetics is thinking of introducing a new product. The investment cost is 10M. If demand for the new product is high, the revenue is expected to be 15M. If demand is low, Arrow Cosmetics expects revenues of 8M. Of course, Arrow Cosmetics does not have to proceed at all with the new product, in which case it will make a profit of 1M by investing its funds (10M) in government bonds, In the absence of any market data, the best guess is that there is a 50-50 chance that demand for the new product will be high or low. What is the expected monetary value of Arrow Cosmetics' optimal action?Arrow Cosmetics is thinking of introducing a new product. The investment cost is 10M. If demand for the new product is high, the revenue is expected to be 15M. If demand is low, Arrow Cosmetics expects revenues of 8M. Of course, Arrow Cosmetics does not have to proceed at all with the new product, in which case it will make a profit of 1M by investing its funds (10M) in government bonds, In the absence of any market data, the best guess is that there is a 50-50 chance that demand for the new product will be high or low. What is the expected monetary value of Arrow Cosmetics' optimal action