Darren Mack owns the? "Gas n'? Go" convenience store and gasstation. After hearing a marketing? lecture, he realizes that itmight be possible to draw more customers to his? high-marginconvenience store by selling his gasoline at a lower price.?However, the? "Gas n'? Go' is unable to qualify for volumediscounts on its gasoline? purchases, and therefore cannot sellgasoline for profit if the price is lowered.

Each new pump will cost

?$95 comma 00095,000

to? install, but will increase customer traffic in the storeby

10 comma 00010,000

customers per year.? Also, because the? "Gas n'? Go" would beselling its gasoline at no? profit, Darren plans on increasing theprofit margin on convenience store items incrementally over thenext five years. Assume a discount rate of

88

percent. The projected convenience store sales per customer andthe projected profit margin for the next five years are given inthe table below.

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Year	Projected Convenience Store Sales Per Customer	Projected Profit Margin
1	?$66	1515?%
2	?$7.507.50	2020?%
3	?$1010	2525?%
4	?$1212	3030?%
5	?$1313	3535?%

a. What is the NPV of the next five years of cash flows ifDarren had

fourfour

new pumps? installed?

NPVequals=?$nothing.

?(Enter

your response rounded to two decimal

places.?)