It will exceed the average profits with probability 0.3, will meet profit expectations with probability 0.5,
and will fail with probability 0.2. It will generate net present value of profits of $500,000 if it exceeds
expectations, $100,000 if it meets expectations, and $-400,000 if it fails. What are the expected profits
from the new plant?
a. $30,000
b. $66,667
c. $70,000
d. $120,000