Question: Simplistic Inc. has a project that costs $600,000. It has a 70% chance of a $1,000,000 payoff and a 30% chance of a $100,000 payoff.

Simplistic Inc. has a project that costs $600,000. It has a 70% chance of a $1,000,000 payoff and a 30% chance of a $100,000 payoff. What is the expected payoff and the expected profit or loss from the new project?

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