Nile.com is considering a plan to develop an online package that has the cost and revenue projections shown below. One of Nile's larger competitors, Online Robinson (OR), is expected to do one of two things in Year 5: (1) develop its own competing program, which will put Nile's program out of business, or (2) offer to buy Nile's program if it decides that this would be less expensive than developing its own program. Nile thinks there is a 45% probability that its program will be purchased for $7 million and a 65% probability that it won't be bought, and thus the program will simply be closed down with no salvage value.

What is the estimated net present value of the project (in thousands) at a WACC = 10%, giving consideration to the potential future purchase? Show your calculations, if any, and explain your answer.

WACC =	10.0%
	0	1	2	3	4	5
Original project:	$3,000	$500	$500	$500	$500	$500
Future	Prob.
Buys	45%					$7,000
Doesn't buy	55%					$0