AAn electronics manufacturer is considering entering into a research and development venture. The research and development investment requires $100,000 at time zero and, if successful, generates $80,000 in profit each year for five years. Salvage value is estimated to be zero. Experience suggests that such projects have a 40% probability of success. If the before-tax minimum rate of return is 20%, should the manufacturer undertake the project? Use expected NPV and expected ROR analysis