Consider the following project data: A Shs $2\mathrm{.}3$ million feasibility study will be conducted at t $=0.$ If the

study indicates potential, the firm will spend Shs $11$ million at t$=1$ to build a prototype. The best

estimate is that there is an $75\%$ chance that the study will indicate potential and $25\%$ chance that it will

not. If reception of the prototype is good the firm will spend Sh$.342$ million to build a production plant at

t$=2.$ The best estimate is that there is a $70\%$ chance that the prototypes$$ reception will be poor. If the

plant is built, there$$s a $63\%$ chance of a t$=3$ cash inflow of Shs $313$ million and a $37\%$ chance of Shs

$145$ million cash inflow. If the inflow at t$=3$ is Shs $313$ million, there are $33\%$ and $67\%$ chances of Shs

$165$ million and Shs $93$ million inflows respectively at t$=4.$ If the inflow at t$=3$ is Shs $145$ million, there

are $82\%$ and $18\%$ chances of Shs $215$ million and Shs $147$ million inflows respectively at t$=4.$ The plant

has a salvage value of Shs $49$ million at t$=5.$

If the appropriate cost of capital is $14\mathrm{.}4\%$ what is the project$$s expected NPV$?$