IBM Inc. has a project that costs $150,000. It has a 50% chance of paying off $300,000 and a 50% chance of paying off $50,000. What is the expected payoff and the expected profit or loss from the new project?

a)The expected payoff is $100,000 and the expected loss is $10,000.

b)The expected payoff is $175,000 and the expected loss is $175,000.

c)The expected payoff is $25,000 and the expected profit is $25,000.

d)The expected payoff is $175,000 and the expected profit is $25,000.