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Techware incorporated is considering the introduction of two new software products to the market. The company has four options regardi in these products: introduce neither

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Techware incorporated is considering the introduction of two new software products to the market. The company has four options regardi in these products: introduce neither product, introduce product 1 only, Introduce product 2 only, or introduce both products, Research and development costs for products 1 and 2 . are $180,000 and $150,000, respectlvely. Note that the first option entalls no costs because research and development efforts have not yet bequn. The success of these software products depends on the national economy in the coming year. The company's revenues, depending on its decision and the state of the economy, are given in the file p09, 33.x isx. The probabilities of ia strong, fair, or weak economy in the coming year are assessed to be 0.10, 0.60, and 0.30, respectively. a. Use Precisiontree to identify the strategy that maximizes Techware's expected net revenue. Techware's optimal decision is to introduce (.). By following this strategy, Fechware can expect to earn 1 . in net revenue. b. Perform a senisitivity analysis on the optimal decision, letting each of the inputs vary one at a time plus or minus 25% from its base value, and summarize your findings. Which of the inputs appears to have the largest effect on the best solution? The RBD cost for (D. and revenue for product introduction in the case of a national economy, have the largest effect on the best solution

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