You are a project manager evaluating a decision to buy a licensed software tool. This tool has a 50% chance of being successfully implemented in your company and would cost $50,000. However, there is a 40% chance that your company would be able to save $150,000 due to improved productivity. What is the expected monetary value of this decision? The expected monetary value for a project is calculated by subtracting expenses from savings. In this case, Savings = 0.4 * $150,000 = $60,000 and Expenses = 0.5* $50,000 = $25,000. So, EMV = $60,000- $25,000 = + $35,000. Need understanding on how expenses is considered as 0.5*50000... The implementation cost according to me would be 50k irrespective of it being successful or not, how can we assume if it is successfully implemented cost would be 25k?