Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that Applied Nanotech can sell 15 units per year at $300,000 net cash flow per unit for the next five years. The engineering department has come up with the estimate that developing the machine will take a $14.8 million initial investment. The finance department has estimated that a discount rate of 16 percent should be used.

	If unsuccessful, after the first year the project can be dismantled and will have an aftertax salvage value of $11.7 million. Also, after the first year, expected cash flows will be revised up to 19 units per year or to 0 units, with equal probability. What is the NPV?
	A.	$1,228,379.51
	B.	$1,221,323.48
	C.	$1,138,343.61
	D.	$1,123,387.87