A company is trying to decide whether or not to invest in developing a new product. The initial estimated cost will be $1,500,000 dollars. From the end of the first year, the project has a 60% chance of returning $600,000 per year and a 40% chance of generating only $300,000 in revenues. Assuming that the company requires 20% return on capital investments. Once the new product is developed, it dominates the market for about 5 years.

a) Determine whether or not this is a viable project.

b) If the company decides to wait for investing in the project, its estimated investment cost will be decreased by 35%. So, if the company start the project next