New Food Inc. plans to open a new a new restaurant in North Dakota. The initial costs of opening the business is $8.2,million. The firm estimates a 28% probability of high demand for the new food. In this case New Food Inc. will receive annual cash flows of 13.0 million for the next 2 years. The firm estimates a 47% probability of medium demand. In this case the company expects to receive annual cash flows of $6.5million for 2 years. There is also possible that the demand will be low and the annual cash flows will be only $1.8 million for 2 years. The company's cost of capital is 13.10 percent.

Initial outlay in millions	Probability	Cash flow Year 1 in millions	Cash flow Year 2 in millions
	28%	13.0	13.0
8.2	47%	6.5	6.5
	Please calculate it	1.8	1.8

Calculate expected NPV of the project.