ABC Corporation is considering investing in a new project with an estimated total cost of $500,000. The project is expected to generate annual revenues of $200,000 for the next five years. However, there is also a risk of the project generating lower revenues due to competition, market conditions, or other factors. ABC Corporation wants to conduct a risk analysis to determine the probability of different revenue outcomes and the expected return on investment. Assuming the following probability distributions for different revenue scenarios, what is the expected return on investment, and what is the probability of the project generating a negative return?

• Probability of revenue being $200,000 = 40%
• Probability of revenue being $150,000 = 30%
• Probability of revenue being $100,000 = 20%
• Probability of revenue being $50,000 = 10%

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