Mathematics · Probability and Decision Making

A company is considering whether to develop and market a new product. The cost of developing the product is $150,000. There is a 70% probability that the development will succeed and a 30% probability that it will fail. If development succeeds, the product will be marketed with the following outcomes: a 50% chance of making a profit of $250,000, a 30% chance of making a profit of $150,000, and a 20% chance of making a loss of $80,000. These profit/loss amounts already account for the $150,000 development cost. If development fails, the $150,000 development cost is written off as a loss. What is the expected value of the decision to develop and market the product?