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Which option should you pursue if an ERP system costs $35,000?

You are trying to decide whether to approve a development budget for a new ERP system. If you are not convinced, you could always skip out on deployment, with no net costs or gains. You could definitely be more aggressive. Here are two options. You could choose System A, which would result in additional sales of either $50,000 under good conditions or $10,000 under bad conditions. You could also choose System B, which would increase sales by $36,000 whether the market condition is good or bad. Assume that good conditions are three times as likely as bad conditions. Which option should you pursue if an ERP system costs $35,000?

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