PLM Ltd is planning to introduce a new product. It expects to sell 7,000 units per year and generate $60 as net cash flow per unit. The initial investment in equipment is $1,800,000. The relevant discount rate is 16% and the life of the project is 10 years. After the first year, PLM can abandon the project and sell the equipment for $1,400,000.

Assume that it is likely that expected sales will be revised upward to 9,000 units if the first year is a success and revised downward to 4,000 units if the first year is not a success. Success and failure are equally likely.

What is the NPV of the investment in the new product, considering the possibility of abandonment?