Acompany is looking for different options to use a new service . 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 can create the software for an initial investment of $11,000, but there is a 27 percent chance that it will not work as designed and require an additional $1,500 of work.

Option 2: The company continue using the existing software, but it would cost $2,500 in additional programming and maintenance to do so. Also, there is a 15 percent chance that the existing software could completely crash, leading to catastrophic damages of $9,000.

Option 3: Purchasing the software will cost $29,000 plus $2000 to customize it; however, there is a 65 percent chance that the software will require an additional $19,000 to fully replace the old software.

• Calculate the expected monetary value for each option (include your calculations)
• Which option will be best for this company?