Suppose a proposed public policy could result in three possible outcomes:

(1) Present value of net benefits of $4,000,000, 

(2) Present value of net benefits of $1,000,000, or

(3) Present value of net benefits of –$10,000,000 (i.e., a loss). Suppose society is risk-neutral and the probability of occurrence of each of these three outcomes are, respectively, 0. 85, 0. 10, and 0. 05, should this policy be pursued or trashed? Why?