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 s the expected annual cost of the vitamin C project? Assume Pharma-Excel's MARR is 15 percent. Note: The lead time is different for each scenario. Pessimistic Optimistic Expected Research and development costs (at the end of research) Lead time to production (years) Probability $500 000 $75 000 $240 000 1 2 3 0.5 0.15 0.35