3. Suppose EMU Software is promoting its new tax preparationsoftware. Its main competing
product is Turbotax’s software worth $50. EMU claims that for30% of the time, its software
identifies additional savings of $110 for their customerscompared to its closest competitor.
Also, EMU’s software is easier to use and it takes only 3 hoursfor its customer to use to
complete all its tax preparations. Turbotax’s software on theother hand takes 4 hours to do
the same. However, EMU Software is a new product and 5% of theircustomers may
experience a bug in the software. The delay in sorting that bugout will lead to an extra day
required for tax preparation using EMU Software for thosecustomers. Assume that a typical
company accountant who would be hired to use the software earns$40 per hour. Calculate
the total economic value of EMU’s software. Note that one day is8 working hours. (10
points)
