York Bikes has come up with a new mountain bike prototype and wishes to commence pilot production and test marketing. The pilot production and test marketing phase will last for one year and cost 709803 now. Your management team believes that there is a 45% chance that the test marketing phase will be successful and that there will be sufficient demand for the new mountain bike. If the test-marketing phase is successful, then the firm can invest 3500000 in year one to build a plant that will generate expected annual after-tax cash flows of 485880 in perpetuity beginning in year two. If the test-marketing phase is not successful, then the firm can still go ahead and build the new plant, but the expected annual after-tax cash flows would be only 300000 in perpetuity beginning in year two The firm has the option to sell the prototype mountain bike to a foreign competitor, next year, for 252956. The firm's cost of capital is 7.7% per annum. Compute the NPV of the project. Answer: Next page