Simplistic Inc. has a project that costs $600,000. It has a 70% chance of a $1,000,000 payoff and a 30% chance of a $100,000 payoff. What is the expected payoff and the expected profit or loss from the new project?

	The expected payoff is $500,000, and the expected loss is $100,000.
	The expected payoff is $700,000, and the expected loss is $100,000.
	The expected payoff is $730,000, and the expected gain is $130,000.
	The expected payoff is $600,000, and the expected gain is $0.