Question: Puppypup Ltd is considering whether to develop and market a new product, the dandy. The cost of developing the dandy is estimated to be $320,000.

Puppypup Ltd is considering whether to develop and market a new

Puppypup Ltd is considering whether to develop and market a new product, the dandy. The cost of developing the dandy is estimated to be $320,000. There is a 75% probability that the development will succeed and a 25% probability that the development will be unsuccessful. If the development is successful, the dandy will be marketed. Possible outcomes associated with marketing activity are as follows: The profit and loss figures stated are after taking account of the development costs of \$320,000. What is the expected value of the decision to develop and market the dandy

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