As you evaluate a vendor bid of $350,000, you take into consideration the probability an impact of any delays. You determine that there is a 65% probability that the vendor will come in behind schedule at a cost of $125,000 and there is a 35% probability that the vendor will come in early for a saving of $50,000. What is the total value of the bid ?

A. $448,750

B. $63,750

C. $413,750

D. $286,250

Answer is C.
How to derive the answer?