Question: Zeta Computing Services Ltd has recently produced some software for a client organisation. The software has a life of two years and will then become

Zeta Computing Services Ltd has recently produced some software for a client organisation. The software has a life of two years and will then become obsolete. The cost of developing the software was £60,000. The client organisation has agreed to pay a licence fee of £80,000 a year for the software if it is used in only one of its two divisions and £120,000 a year if it is used in both of its divisions. The client may use the software for either one or two years in either division but will definitely use it in at least one division in each of the two years.

Zeta Computing Services Ltd believes there is a 0.6 chance that the licence fee received in any one year will be £80,000 and a 0.4 chance that it will be £120,000.

Produce an event tree diagram for the project.

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