Herjavec Enterprises is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that the company can sell $16$ units per year at $$295,000$ net cash flow per unit for the next $4$ years. The engineering department has come up with the estimate that developing the machine will take a $$14\mathrm{.}1$ million initial investment. The finance department has estimated that a discount rate of $13$ percent should be used.

a$.$ What is the base$-$case NPV$?($A negative answer should be indicated by a minus sign.$)(1$ mark$)$

b$.$ If unsuccessful, after the first year, the project can be dismantled and will have an aftertax salvage value of $$10$ million. Also, after the first year expected cash flows will be revised up to $21$ units per year or down to $0$ units with equal probability. What is the revised NPV$?(3$ marks$)$