Question: FlatCola Cybersystems must decide whether to develop a new security software suite. If the development succeeds, the return on the product may be large or

FlatCola Cybersystems must decide whether to develop a new security software suite. If the development succeeds, the return on the product may be large or small, depending on whether they can bring the completed product to market ahead of their competitors, allowing them to dominate the market. If the development does not succeed, it may still produce valuable innovations that would partially offset the costs of product development. The tree below summarizes the decision.

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