The expected value (EV) of Ang Electronics, Incorporated's payoff is the probability-weighted average of the different payoffs that could result from the successful and failed mesh network. If the mesh network is successful, the present value of the payoff (when the product is brought to market) is $34.3 million. This is the possible payoff if the mesh network is successful. If the mesh network fails, the payoff is unknown, so the best estimate is $0. This is the possible payoff if the mesh network fails. Let's assume that the probability of the mesh network succeeding is p and the probability of failing is 1-p. Therefore, the expected value of the payoff, EV, is given by: EV = p($34.3 million) + (1-p)($0) = $34.3 million * p, Thus, the expected value of the payoff is directly proportional to the probability of success. The more likely the mesh network is to succeed, the greater the expected value of the payoff will be.