In this example, we have intentionally left out any explicit cost of waiting. But you can easily include potential waiting costs in the calculation. Suppose that while you wait to gauge the market potential, a rival will grab $20 million worth of your anticipated revenues. The revenues under your most favorable scenario will be only $110 million and under the unfavorable one only $30 million. Now, if you wait, you can expect an outcome of $110 million—$80 million = $30 million with probability 1/2 and an outcome of zero with probability 1/2, for an expected value of $15 million. That is still better than the $10 million you get if you go ahead at once.