On January 1, 2022, Perfect Industries has the opportunity to invest in a project with an uncertain outcome. The product might be a hit and highly profitable, or it might not. To put specific numbers to it, there is a 50 percent chance that the payoffs will be an annuity of $2,000 per year for three years. There is also a 50 percent chance that the payoffs will be an annuity of $500 per year for three years. The payoff on December 31, 20X1 is when Pujols discovers whether the product is a hit or not. If the payoff is $2,000, then the other two years will also be $2,000. If the payoff is $500, then the other two years will also be $500. Because Perfect does not know whether the product will be a hit or not, Perfect assigns 50/50 chances to the $2,000 and the $500. The alternative use of money is to invest it at 10 percent. The present value of annuity factor for 10% and 3 years is 2.48685 Required: 1. What is the present value of the project as of January 1, 2022? 2. What is the role of the accounting report on December 31, 2022