If Wooduction opens the branch now, it will cost Wooduction $2.7 million immediately to open the new branch. Wooduction expects to receive an annual cash flow of $840000 in perpetuity. The manager has the option to close the branch at the end of the first year and sell the branch for $38.5 million.

If Wooduction opens the branch in one year, the probability of market demand being high and low is 60% and 40%, respectively. If the market demand is high, Wooduction will spend $1.2 million to open the new branch, and expect to receive an annual cash flow of $830000 in perpetuity. If the market demand is low, Wooduction will spend $0.6 million to open the new branch, and expect to receive an annual cash flow of $498000 perpetuity.

The cost of capital for this project is assumed to be 2.4%.

The NPV of this project for Wooduction is closest to?