32 (LG 1) Pharma-Excel is a pharmaceutical company. It is currently studying the feasibility of a research project that involves improvement of vitamin C pills. To examine the optimistic, expected, and pessimistic scenarios for this project, it gathered the data shown below. What is the expected annual cost of the vita- min C project? Assume Pharma-Excel's MARR is 15 percent. Note: The lead time is different for each scenario. Optimistic Expected Pessimistic Research and development costs $75 000 $240 000 $500 000 (at the end of research) Lead time to production (years) 2 3 Probability 0.15 0.5 0.35