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Question content area Part 1 A company looking for venture capitalist funding is deciding on the design of its operating system ( OS ) for

Question content area
Part 1
A company looking for venture capitalist funding is deciding on the design of its operating system(OS) for its new phone. The first option is to simply buy the OS from another company. This would result in sales of either18,000 units if the market is not crowded with similar phones, or sales of only5,000 units if the market is crowded. If the company decides to design its own OS, the phone would have sales of 4 comma 500 units if the OS was popular, but sales of only1,500 if the OS was a failure. If the probability that the market is crowded is 40% and the probability that the OS is popular is60%, what is the EMV of the buying option? What is the EMV if the company chooses to design its own OS?

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