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 a contraction, the firm expects the store to lose $400.000 next year, (lose) $300,000 second year, and (lose) $500,000 third year. (ii) if he builds a 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. Analysts estimate a 30% chance for the local economy to experience an expansion next year (hence a 7096 chance for contraction). Assume profit and loss are realized at the end of the year, the NPV values at an interest rate of 10% are already calculated for small store alternative, you need to calculate the NPV value first fonlarge store alternative. a. (3 pts) What is the expected monetary value (EMV) of building the large store at an interest rate of 1096? (round your response to two decimal places) b. (3 pts) What is the expected monetary value (EMV) of building the small store using net present value (NPV) at an interest rate of 1096? (round your response to two decimal places) C. (4 pts) Should he build a large store or a small store