8.3 Consider the case in which learning about expected future cash flows requires an actual investment in the venture but that the investment can be staged. Assume that in the venture described in problem 8.1, instead of investing $1,200 right away, a pilot project can be started at the cost of $50, and that an additional $1,150 would be required in a year in order to generate free cash flows starting from the second year onward. The cost of abandoning the venture in year 1 would be $10. What is the NPV of the venture?