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In 2020, SternLite is thinking about developing a new technology on self-driving. The estimated cost of internally development is about $20,000. A small company has

In 2020, SternLite is thinking about developing a new technology on self-driving. The estimated cost of internally development is about $20,000. A small company has developed such technology and offered $40,000 to sell the technology to the SternLite. If you are the CEO of SternLite, your compensation fully depends on the net income. Which strategy will you choose, internal development or purchase it from the small company?

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