Graphic Design Inc

Multiple Choice

Graphic Design Inc.has a project that costs $150,000.It has a 40% chance of a $200,000 payoff and a 60% chance of a $100,000 payoff.What is the expected payoff and the expected profit or loss from the new project?

A) The expected payoff is $160,000 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 $140,000 and the expected loss is $10,000.
D) The expected payoff is $150,000 and the expected loss is $0.