Your firm has an opportunity to invest in a project that costs $800 and you expect it to return two payments of 500 per year. The interest rate of the project is 10%. The current NPV of project is $67.77.

You also have the option to wait one year to invest the $800. If you wait you will know more and can revise your expectations such that you either expect to return two payments of $750 with a probability of 0.8 or alternatively two payments of $300 (the probability of this is equal to 1 minus the probability of the first result). The interest rate of the project is still 10%.

What is the current present value of the NPV if they choose to wait?