Xander Inc

Xander Inc. has prepared the following sensitivity analysis: In addition, it has assigned the following likelihoods to the three possible annual net cash flows: $500,000, 70%; $600,000, 20%; and $700,000, 10%. Based on an expected value analysis, which of the following statements is accurate?

A) The expected value of the annual net cash flow is $540,000, and the project should be rejected.
B) The expected value of the annual net cash flow is $540,000, and the project should be accepted.
C) The expected value of the annual net cash flow is $660,000, and the project should be rejected.
D) The expected value of the annual net cash flow is $660,000, and the project should be accepted.