You are considering setting up a firm to produce gadgets. The demand for gadgets can be high, medium, or low with equal probability. The corresponding cash flows are:

These cash flows will begin one year after the investment is made and continue forever. The cost of the project is $$300$ today. The discount rate is $50\%($yes$,$ that$$s not a typo$).$

a$)$ What is the NPV of the project?

Suppose you can commission a study that tells you what the demand for gadgets will be$.$ The study takes two years to complete. What is the NPV of the project if you commission the study