We are examining a new project. We expect to sell 6,800 units per year at $62 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $62 6,800 = $421,600. The relevant discount rate is 16 percent, and the initial investment required is $1,790,000. After the first year, the project can be dismantled and sold for $1,660,000. Suppose you think it is likely that expected sales will be revised upward to 9,800 units if the first year is a success and revised downward to 5,400 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., 32.16.)

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., 32.16.)

**The answers are NOT:

NPV $1,701,841.43

Option value $1,206,437.96

Please help me find the right answer. Will upvote if correct. Thank you.