​If the firm learns that the complicated technology can be made more stable with a few tweaks increasing the cost by 5.5million and increasing the probability of a launch to 50%.Is it worth for the firm to invest the $500,000 in tweaks?

A) ​No,because it decreases the total expected value
B) Yes,because it increases expected value
C) No,because it increases risk
D) ​Yes,because tweaking is good

Before tweaking, the expected value of the complicated software is:
Expected Value = (0.3 * $50million) - $10million = $5million
After tweaking, the expected value of the complicated software is:
Expected Value = (0.5 * $50million) - $15.5million = $9.5million
Therefore, the expected value of the complicated software increases by $4.5million ($9.5million - $5million) after tweaking. Since the cost of tweaking is $500,000, the net increase in expected value is $4million ($4.5million - $0.5million), which is greater than the cost of tweaking. Therefore, it is worth for the firm to invest in the tweaks. Answer B is correct.