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Which of the following reflects the expected monetary value of purchasing the software?

A project needs software. After analyzing the choices, it is determined that if made in-house,
it will cost $100,000. However, if the software is purchased, the cost would be $25,000.
After reviewing the successful implementations in the past, if made in-house, there is a 20%
chance that $30,000 would be spent on bug fixes. If the software is purchased, there is a

70% chance that $200,000 in training and customizations would be required. Which of the
following reflects the expected monetary value of purchasing the software?

PrepAway - Latest Free Exam Questions & Answers

A.
$106,000

B.
$157,500

C.
$165,000

D.
$225,000


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