Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO are bidding for a $900,000 government contract. Each company has an equal chance of being awarded the contract. If ESCO has already spent $100,000 in developing its bidding proposal, what is its expected net profit?
A)$100,000
B)$90,000
C)-$10,000
D)$0

Question

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The Answer of Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO are bidding for a $900,000 government contract. Each company has an equal chance of being awarded the contract. If ESCO has already spent $100,000 in developing its bidding proposal, what is its expected net profit?
A)$100,000
B)$90,000
C)-$10,000
D)$0

Ephemeral Services Corporation (ESCO) Knows That Nine Other Companies Besides