1. Your company develops anti-virus software. You have new software package ready to be introduced to the market. You know you have a choice of introducing the product now or waiting 4 months. You accounting department did some research and determined the following:

Option A - Introduce now with a 55% probability of success with potential revenue of $300,000. It has a 45%probability of failure with a potential loss of $125,000

Option B - Introduce in 4 months with a 65% probability of success with potential revenue of $400,000. It has 35% probability of failure with a potential loss of $200,000

Based on this information, when should the company introduce the new software package. Show all work.