^ Tbh, I'm really bad at probability. I'll try it, if I do wrong, correct me
b) First, you have to find probability distribution
Dunno how to draw the table in LaTex though

There are 2 situtations: satify (S) and not satisfy (S')
Its better to draw tree diagram so you can see that
If its S, the prototypes will go into production. if its S', there are 2 types of probabilities next time: S and S'
Pr(S at first time)=0.65 => cost 7 millions
Pr(S second time)=0.35 x 0.65= 0.2275 => cost 7+3.5 (half of 7)=10.3 millions
Pr(S at third time or abandoned)=0.35 x 0.35 x 0.35 + 0.35 x 0.35 x 0.65=0.1225 => cost 7+3.5+1.75=12.25 millions
So E(X)= 7 x 0.65+10.3 x 0.2275 + 12.25 x 0.1225 = 8.393875
c) If the machine developed, income will be 20 millions
Total income=(0.65+0.2275+0.35x0.35x0.65) x 20=19.1425 millions
Profit = income - cost = 19.1425 - 8.393875 = 10.748 millions