Buck Manufacturing is considering installing a revised layout for assembling a high-end wood-burning stove. This revised layout will cost $150,000 to install. The annual operating costs for the next three years follow a probability distribution as below. (+3 pts.) Year Cost Probability

1 $210,000 0.5

2 230,000 0.25

3 250,000 0.25

If the interest rate is 12%, what is the expected annual cost of the revised layout for the next three years?