You are a project manager for a major telecommunications network upgrade with NPV of US$10, 000, 00. You are heavily dependent on a third party vendor for your project and your contact office informs you that there is a 30% chance that the vendor will go out of business at the end of the quarter. If that occurs , your project will incur a US$3,000,00 cost overrun due to rework . there is also a 30% chance that a new legislation will pass that will decrease government oversight of your team’s work. If this legislation passes, you estimate that your project will save US$1,600,000 in time delays. Lastly, your technical lead indicates that there is a 20% chance that a new software package will be available by the month end, that could save US$ 1,800,000 in testing time. If available, the software will cost US$ 500,000 to procure, install and train. What is the total expected monetary value of these 3 risk events?

a) $60,000
b) $1,640, 000
c) $5,900, 000
d) $160,000