The smart watch is a breakthrough product, which will require significant research and development (r& d) investments. there is only a 5% chance that the development of the smart watch will be successful. the company estimates that product development for the smart watch will be $100, 000. the digital music players will only cost $10,000 of research and development (r& d) investments. there is an 80% chance that the development of the digital music player will be successful. for both products, of the npd process is not successful, then time will not realize any revenues.