Ajeet Corporation is considering the risk characteristics of a certain project. The firm has identified that the following factors, with their respective expected values, have a bearing the NPV of this project.

$$ Initial investment Rs$.30,000$

$$ Cost of capital $10\%$

$$ Quantity manufactured and sold annually $1,400$

$$ Price per unit Rs$.30$

$$ Variable cost per unit Rs$.20$

$$ Fixed costs Rs$.3,000$

$$ Depreciation Rs$.2,000$

$$ Tax rate $50\%$

$$ Life of the project $5$ years

$$ Net salvage value Rs$.$ Nil

Assume that the following underlying variables can take the values as shown below:

underlying variable Pessimistic Optimistic

Quantity manufactured and sold $8001800$

Price per unit Rs$.20$ Rs$\mathrm{.}50$

Variable cost per unit Rs$.40$ Rs$.15$

Calculate the net present value for the firm under a pessimistic approach.

$-$Rs $16,732$

Rs $16,732$

Rs $5,360$

Rs $2,222$