Estimate will farma reap 500000 dollar in additional revenue

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Farma Inc. is working on the development of a new drug to combat Fingulesa. It has identified two strategies to pursue. Strategy one has a probability of success of 40% and strategy 2 has a probability of success of 60%. Strategy one costs $20,000 per month to pursue and strategy two costs $35,000 per month to pursue. Farma estimates it will take 6 months before it knows if a strategy will work. If either strategy works, Farma estimates it will reap $500,000 in additional revenue.

Reference no: EM13192705

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