NO EXCEL PLS

Orange Computer is considering introducing a new product, the iToaster. It will have play music while toasting bread and will imprint your favorite design on the toast. Oranges charismatic leader is confident that the iToaster will be a great success, but analysts think otherwise. The table below shows the after-tax cash flows associated with high and low iToaster sales. The probability of high sales is 30% and the probability of low sales is 70%. Using a 15% discount rate and an initial investment of $4,000,000 compute the NPV abandoning the project at an optimal time if Sales are low, i.e., the real options approach. Important: Enter your answer in whole dollars, e.g., 21150 or for negative values -21150. Do not include dollars signs ($), decimals, cents, or commas in your answer.

Year	1	2	3	4	5	6
High Sales 30%	3,000,000	3,500,000	4,000,000	4,500,000	5,000,000	5,000,000
Low Sales70%	0	-500,000	-500,000	-500,000	-500,000	-500,000