A company XYZ is considering manufacturing a product in space.

The project lifetime is 10 years and has the following consecutive phases:

Phase 1 (years 1 to 3): The engineering design and development requires 3 years. No production is done during this period

Phase 2 (years 4 to 10): to launch the spacecraft into orbit, operate the equipment from the ground by remote control, and recover the spacecraft with the product. This phase is completed in one year, and will be repeated for the next 6 years for a total of 7 launches. All costs are paid at the end of each year.

1. If the annal net cash flow of phase 2 is $6100000 per year, what is the present value of the net cash flow when evaluated at the beginning of phase 2 (year 4)? Note that phase 2 is 7 years.