Question: ( ( ( ( EXPECTED MONETARY VALUE ) ) ) ) Nexus Solutions, a new start - up , is currently upgrading its security systems.

((((EXPECTED MONETARY VALUE))))
Nexus Solutions, a new start-up, is currently upgrading its security systems. The chief security officer, Clark Robinson, has conducted a risk analysis. The security team estimates a 20% probability of a significant security mishap in the next five years. Robinson has three options to consider:
Option 1: Educate the employees and prepare them for a security event at a cost of $40,000.
Option 2: Improve the firm's security system at a cost of $60,000.
Option 3: Do nothing.
In the event of a security mishap, the firm will incur costs of $25000 if Option 1 is chosen, $10000 if Option 2 is chosen, and $80000 if Option 3 is chosen. What should Robinson do? if she chooses option 3. What should he do?

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