IBM IncHas a Project That Costs $90,000

Multiple Choice

IBM Inc.has a project that costs $90,000.It has a 50% chance of paying off $200,000 and a 50% chance of paying off $0.What is the expected payoff and the expected profit or loss from the new project?

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