A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table:

	State of Nature
	Rezoning Approved	Rezoning Not Approved
Decision Alternative	S1	S2
Purchase, d1	610	-190
Do not purchase, d2	0	0

If the probability that the rezoning will be approved is 0.5. What is the maximum that the investor should be willing to pay for the option? Round your answer to three decimal places. Why or why not? EVSI =