ResMed Company is considering an investment project that generates a cash flow of $760,000 next year if the economy is favorable but generates only $350,000 if the economy is unfavorable. The probability of favorable economy is 60% and of unfavorable economy is 40%. The project will last only one year and be closed after that. The cost of investment is $590,000 and ResMed plans to finance the project with $200,000 of equity and $390,000 of debt. Assuming the discount rates of both equity and debt are 0%. What is the expected cash flow to ResMed Company's shareholders if the company invests in the project?

$0
		$186,000
		$222,000
		$370,000
		$390,000