a retailer is considering building a store large or small. if he builds a large store and the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year, $2,500,000 profit second year, and $2,800,000 profit third year. if he builds a large store and the local economy experiences contraction, the firm expects the store to lose 400,000 next year, (lose) 300,000 second year , and lose 500,000 third year

if he builds small store and the local economy experiences expansion, the net present value of his profit will be $3,000,000. on the other hand if local economy experiences contraction, the net present value of his loss will be 450,000

analyst estimate a 30% chance for the local economy to experience an expansion next year( hence a 70% chance for contraction). assume profit and loss are realized at the end of the year, NPV values at an interest rate of 10% are already calculated for small store alternative you need to calculate the npv value first for large store

a) what is the expected monetary value (EMV) of building the large store at an interest rate of 10% ( two decimal places)

b) what is the expected EMV for small store using net present value at an interest rate 10% ( two decimal places)

c) should he build large or small store