Apple is considering a project with a three-year life and an initial cost of $90,000. The discount rate for the project is 16 percent. The firm expects to sell 1,400 units on the last day of each...

Apple is considering a project with a three-year life and an initial cost of $90,000. The discount rate for the project is 16 percent. The firm expects to sell 1,400 units on the last day of each year. The cash flow per unit is $35. The firm will have the option to abandon this project following the sales on the last day of year 2 at which time the project's assets could be sold for an estimated $45,000. The firm's managers are interested in knowing how the project will perform if the sales forecast for year 3 of the project is revised such that there is a 50/50 chance that the sales will be either 1,200 or 1,600 units a year. What is the net present value of this project at Time 0 given the current sales forecasts?