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A manufacturing company is considering whether to establish a new distribution center ( DC ) in a particular region. The initial investment for setting up

A manufacturing company is considering whether to establish a new distribution center (DC) in a particular region. The initial investment for setting up the new DC is Rs.10,00,000. If the new DC is successful, it is expected to generate annual savings of Rs.3,00,000 due to reduced transportation costs and improved efficiency. However, there's uncertainty about market demand in that region, with a 70% chance of high demand and a 30% chance of low demand. What would be the expected annual savings in case of successful setting up of new DC with 0.2 discount rate?
2,75,000
1,75,000
75,000
None of the above

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