A company is looking for different options to use a new technology . The company could purchase new software and customize it for its needs, or develop its own software.

The company has the following options:

Option 1: The company continue using the existing software, but it would cost $1,500 in additional programming and maintenance to do so. Also, there is a 10 percent chance that the existing software could completely crash, leading to catastrophic damages of $7,000.

Option 2: Purchasing the software will cost $20,000 plus $1000 to customize it; however, there is a 55 percent chance that the software will require an additional $14,000 to fully replace the old software.

Option 3: The project can create the software for an initial investment of $9,000, but there is a 33 percent chance that it will not work as designed and require an additional $1,800 of work.

• Calculate the expected monetary value for each option (show your calculations)
• Which option will be best for your project?