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A firm is considering a project with startup costs of $142,954. The project involves producing a product with (variable) production costs of $249,691. If demand
A firm is considering a project with startup costs of $142,954. The project involves producing a product with (variable) production costs of $249,691. If demand is strong (50% chance), we can sell the output for $982,113. If demand is weak (50% chance), we can only sell the output for $90,338. If we have the option to abandon the project if demand is weak, what is the NPV of this project at a discount rate of 9%? Round answers to the nearest penny
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