Question: Your engineers are developing a new product to launch next year that will require both software andhardware innovations. The software team requests a budget of

Your engineers are developing a new product to launch next year that will require both software andhardware innovations. The software team requests a budget of $5 million and forecasts a 75%chance of success. The hardware team requests a $10 million budget and forecasts a 30% chance ofsuccess. Both teams will need 6 months to work on the product, and the risk-free interest rate is 4%APR with semiannual compounding. You are considering which team should work on the project first(1) lf software team works on the project frst, what will be the expected cost of completing bothprojects?

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