When Paul first pitched a new product idea to his manager, it was very well received because he did such a thorough job of researching

and analyzing it$.$ He presented a comprehensive forecast that included both possible and probable levels of returns to be earned from

this investment. As a result, the company handed over the money and put Paul in charge of the project. The company planned to

evaluate the investment based on his "probable" forecast.

One year into the project, money started getting tight in other divisions of the company. Pressure was on for Paul to provide some

proof that this $3-$year investment was starting to work. As of the end of that first year, $$12,200$ in operating costs and $$12,200$ in new

operating cash inflows $($both reflect after$-$tax amounts$)$ had been realized.

Paul had collected the following information but clearly still only had projections for the remaining $2$ years of this project.

Estimated operating cash inflows $($after$-$tax$)$:

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$($a$)$

$x$ Your answer is incorrect.

What was Paul's initial projection for the NPV of the cash flows at this probable level of activity, assuming an $9\%$ discount rate?

Tax effects, including any depreciation tax shield, have already been accounted for in the above amounts. $($Round present value

factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $2$ decimal places e$.$g$.5,125\mathrm{.}36.$ Enter negative amounts using

either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

NPV $