Hope corporation is considering a project that has an up-front after-tax cost (at t=0) of $900,000.00. The project's subsequent cash flows critically depend on whether its prroducts become the industry standard. There is a 70% chance that the products will become the industry standard, in which case the project's expected after-tax cash flows will be $800,000.00 at the end of each of the next two years (t=1,2). There is a 30% chance that the products will not become the industry standard, in which case the after-tax expected cash flows from the project will be $250,000.00 at the end of each of the next two years (t-1,2). Hope will know for sure, one year from today, whether its products have become the industry standard. It is considering whether to make the investment today, or wait a year until after it finds out if the products have become industry standard. If it waits a year, the project's up-front cost at t=1 will remain at $90o,000.00 (certain cash flow). If it chooses to wait, the estimated subsequent after-tax cash flows will remain at $800,000.00 per year for two years if the product becomes industry standard, and $250,000.00 per year for two years if the product does not become industry standard. There is no penalty for entering the market late. Assume that all risky cash flows are discounted at 10% and risk-free rate is 5%. 1) what is the expected NPV of the project if Hope proceeds today? 2) If hope chooses to wait a year before proceeding, what will be the project's new expected NPV?