Question $10)$ A corporation is trying to decide whether to buy the patent for a product

designed by another company. The decision to buy will require an investment of $$8$ million,

and the demand for the product is not known.

If demand is light, the company expects a return of $$1\mathrm{.}3$ million each year for four years.

If the demand is moderate, the return will be $$2\mathrm{.}5$ million each year for four years.

and a high demand will mean a return of $$4$ million each year for four years.

It is estimated that the probability of a high demand is $0\mathrm{.}4$ and the probability of a light

demand is $0\mathrm{.}2.$ The firm's interest rate $($risk free$)$ is $12\%.$

Calculate the expected present worth of the investment.