Question: Alyeska Salmon Inc. is considering investing in a brand new telephone product. There is a 30 percent chance that it will cost dollar 1 million to launch this new product. The probability is 70 percent that it will cost dollar 1.4 million at the initial state. Once the product is introduced, there is a 60 percent probability that it will generate dollar 1.2 million cash-flow every year for the next three years, and with probability 40% the cash-flow would be dollar 900,000 yearly for 3 years. Alyeska Salmon Inc. cost of capital is 10.5 percent. Calculate the net present value.