A company has to decide which of three mutually exclusive projects to invest in during the next year. The directors believe that the success of the projects will vary depending on consumer demand. There is a 20% chance that consumer demand will be above average; a 45% chance that consumer demand will be average and a 35% chance that consumer demand will be below average. The net present value for each of the possible outcomes is as follows: A market research company believes it can provide perfect information on potential consumer demand in this market. What is the basis of expected value, the maximum amount that should be paid for the information from the market research company?
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