EMV question

Paul is a project manager for an industrial design project. The project has a 60% chance of making the company $230,000 over the next year. It has a 40% chance of costing the company $150,000. What’s the project’s EMV?


A $138,000
B $60,000
C $78,000
D $230,000
 


Need brief justification and explanation.


Thank you all.

 60/100*230000 - 40/100*15000= 78000

EMV will be positive when there is revenue/profit

EMV will be negative when there is expense

So net is 138000 - 60000=78000