Kinston Industries has a new mountain bike project that is ready to go ahead with pilot production and test marketing. The pilot production and test marketing phase will last for one year and require an initial investor of $500,000. The management team of Kinston Industries believes that there is a 50% chance that the test marketing will be successful and that there will be sufficient demand for the new mountain bike. If the test marketing phase is successful, then Kinston Industries will invest $3 million in year one to build a plant that will generate an annual after-tax cash flow of $400,000 from year two, and this cash flow is in perpetuity. If the test marketing phase is not successful, Kinston can still go ahead and build the new plant that will generate an annual after-tax cash flow of $200,000 from year two, and this cash flow is in perpetuity. However, Kinston also has an option to abandon the project in year one and sell the project to an overseas competitor for an aftertax cash flow of $300,000 in that year. If the projects cost of capital is 10%, what is the net present value (NPV) of the project?