Xander Inc. has prepared the following sensitivity analysis:

Line Item Description	Amount	Amount	Amount
Estimated Annual Net Cash Flow	$500,000	$600,000	$700,000
Present value of annual net cash flows ( 4.487)	$2,243,500	$2,692,200	$3,140,900
Present value of residual value	50,000	50,000	50,000
Total present value	$2,293,500	$2,742,200	$3,190,900
Amount to be invested	(3,000,000)	(3,000,000)	(3,000,000)
Net present value	$(706,500)	$(257,800)	$190,900

In addition, it has assigned the following likelihoods to the three possible annual net cash flows: $500,000, 70%; $600,000, 20%; and $700,000, 10%. Based on an expected value analysis, which of the following statements is accurate?

a. The expected value of the annual net cash flow is $540,000, and the project should be accepted.

b. The expected value of the annual net cash flow is $660,000, and the project should be rejected.

c. The expected value of the annual net cash flow is $540,000, and the project should be rejected.

d. The expected value of the annual net cash flow is $660,000, and the project should be accepted.