You are looking into an investment that will cost $$550$ today and will generate cash flows of $$100$ every year into perpetuity. The discount rate for this investment is $20\%.$

Same investment, but you$$ll know more about the investment in one year:

$50\%$ chance of success

CFs will be $$150$ per year into perpetuity

$50\%$ chance of failure

CFs will be only $$50$ per year into perpetuity

Managers can sell the investment in one year for $$400($real option$)$

What is the NPV$?$