Bold sentance is the answer just need the method

A manufacturing firm is considering the production of a new electronic device. This project has an estimated life of 7 years and requires an initial capital outlay of $5.2 million. The salvage value is negligible. The fixed production costs will amount to $1 million per year. However, the demand and the unit variable production costs (assumed constant within the plant's range of operating capacities) for such a new device are uncertain. A market survey and a detailed cost analyses have yielded the following information concerning these parameters (highest probability is most probable): The firm's cost of capital is 15% (i) and the selling price of the new device is $100 per unit. Assume that annual demand and unit variable production costs are independent. Please ignore income taxes. Determine the expected value (EV) for total annual operating costs. [$3,473,500] Determine the most-likely net present value. [$1,040,600]