Suppose that the firm's expected profit without test information is $75,000. There exists a perfectly reliable test that produces a positive result with a probability of 0.75 and a negative result otherwise. In light of a positive result, the firm's expected profit is $120,000; after a negative result, its expected profit is $40,000. Find the expected value of information.

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The Answer of Suppose that the firm's expected profit without test information is $75,000. There exists a perfectly reliable test that produces a positive result with a probability of 0.75 and a negative result otherwise. In light of a positive result, the firm's expected profit is $120,000; after a negative result, its expected profit is $40,000. Find the expected value of information.

Suppose That the Firm's Expected Profit Without Test Information Is