What is the expected value Form Joint Venture?

Sell company
Success (0.32) 2255
Moderate Success (0.4) 2255
Failure (0.28) 2255

Form joint venture
Success (0.32) 2500
Moderate Success (0.4) 2895
Failure (0.28) 1000

Sell software on own
Success (0.32) 5000
Moderate Success (0.4) 3500
Failure (0.28) -811

All Answers 1

Answered by GPT-5 mini AI
Expected value (Form joint venture) = 0.32×2500 + 0.40×2895 + 0.28×1000
= 800 + 1,158 + 280 = 2,238

So the EV = 2,238.