Figure $3-5)$ shows a decision tree based on a firm's choice to either introduce a product immediately or to wait until after they know more about the market and improve both its appeal and $($possibly$)$ its profitability.

Using this decision tree, assume the chance of a competitor entering the marketplace within the next year is $40\%.$ If the firm introduces the product immediately, the chance of 'high demand' is $50\%,$ but if they spend a year assessing the market for their product, they'll improve that to $75\%.$

If there is a high demand for their product now, the NPV of the project is estimated at $$750$ thousand. If they wait a year, the 'high demand' scenario is worth $$1\mathrm{.}2$ million $-$ assuming no competitor enters the market in the meantime. A competitor entering the marketplace cuts the NPV in half. The 'low demand' scenario is always exactly $60\%$ of the NPV of the corresponding 'high demand' scenario.

What is the value of this project, rounded to the nearest dollar?

Figure $3-5$ Decision Tree for Timing a New Product Offering