Q$5.$swizzlers, a tech start up$,$ is considering launching a new product, the EcoCHarge POWERpod. It has determined that the initial cost will be $390000\mathrm{.}00$$ and the required rate of return has to be $11\%.$ It hired a consultancy firm to investigate market demand which charged it $85000$$$.$ Based on their findings $,$ the company believes the product has a $45\%$ chance of success and a $55\%$ chance of failure.

If the product fails it will generate an annual after tac cash flow of $165,000$$ while if it succeeds the annual after tax cash flow will be $300,000$$$.$ Assume the first cash flow comes at the end of the first year in either case. The company has decided that if the product fails it will discontinue the product after the first year but if the product is a success the company can expand it with no additional investment andd increase the after tax cash flow to $360,000$$ a year for years $2-5.$ At the end of year $5$ the product will be terminated. Calculate the NPV of the project.