Kate wants to invest some money for a few years and is looking at several investment alternatives. The returns on her investment will largely depend on the state of the economy in the next few years. The various investment alternatives and their returns in the next few years are as follows: STATES OF NATURE DECISION (Economic Conditions) ALTERNATIVES Stable economy Favorable economy Unfavorable economy Stocks $250,000 $400,000 $ 155,000 Bonds $115,000 $175,000 $50,000 Money market fund $55,000 $75,000 $25,000 Real estate $150,000 $250,000 $85,000 Hedge fund $210,000 $325,000 $110,000 After a thorough analysis, Kate was able to estimate the probabilities for the three states of nature: P(stable economy) - 0.25; P(favorable economy) - 0.60; P(unfavorable economy) - 0.15. What is the Expected Value of Perfect Information (EVPI) for Kate? $27,000 $131,500 $75,250 $7,000 $306,250