. Volunteer Vegetables is considering introducing a new broccoli dish. It will cost $20,000 to develop and the resulting cash flows will be either 4 years of $10,000 cash flows (probability = 40% ) or 4 years of $5,000 cash flows (probability = 60%). VV's WACC is 10%. Calculate the expected NPV of the project.

Suppose VV can continue selling the new broccoli dish after the 4 years is up and continue to receive the same cash flows it received the first 4 years for another 4 years if it spends $20,000 to redesign the package and tweak the recipe. What is the expected NPV of this project now? Assume all cash flows are discounted at the WACC