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Perform a risk analysis to determine the expected profit or (loss) from a project which...

Perform a risk analysis to determine the expected profit or (loss) from a project which has four possible disjoint outcomes:

Outcome A shows a profit of $340,000 and has a probability of 0.25.

Outcome B shows a profit of $120,000 and has a probability of 0.40.

Outcome C shows a loss of $40,000 and has a probability of 0.10.

Outcome D shows a profit of $100,000 and has a probability of 0.25.

A.

$130,000

B.

$520,000

C.

$154,000

D.

($168,000)

E.

none of the above

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