We are examining a new project. We expect to sell $6,200$ units per year at $$76$ net cash flow apiece for the next $10$ years. In other words, the annual operating cash flow is projected to be $$76\backslash$times $6,200=$ $$471,200.$ The relevant discount rate is $18$ percent, and the initial investment required is $$1,730,000.$ After the first year, the project can be dismantled and sold for $$1,600,000.$ Suppose you think it is likely that expected sales will be revised upward to $9,200$ units if the first year is a success and revised downward to $4,800$ units if the first year is not a success.

a$.$

If success and failure are equally likely, what is the NPV of the project? Consider the possibility of abandonment in answering. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$

What is the value of the option to abandon? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$