Mrs. Lee has indicated that she does have alternative development proposals, which are: 1. A reduced research program to see someone else comes out with the product first and if not, then proceed with a crash program. The reduced program for the first eight months would cost $10,000 per month. One advantage of this is that if the effort was unsuccessful, then development costs would be held to the eight-month figure (8 months X $ 10,000 = $80,000). The likelihood of success under this approach is the same as the more orderly development. (The likelihood of a competing company developing a product in 8 months is 60 percent.) The crash development program would take place in months 9 through 12 and would cost an additional $60,000. It would proceed only if the eight-month study guaranteed a success. 2. Use a reduced research program and maintain an awareness of industry developments to see if someone else develops a product. If someone else has developed a product at the end of six months, it would cost only an additional $30,000 to analyze their product and duplicate it. The reduced development program would cost $10,000 per month