IBM IncHas a Project That Costs $150,000

Multiple Choice

IBM Inc.has a project that costs $150,000.It has a 50% chance of paying off $300,000 and a 50% chance of paying off $50,000.What is the expected payoff and the expected profit or loss from the new project?

A) The expected payoff is $175,000 and the expected profit is $25,000.
B) The expected payoff is $25,000 and the expected profit is $25,000.
C) The expected payoff is $175,000 and the expected loss is $175,000.
D) The expected payoff is $100,000 and the expected loss is $10,000.