Help with expected value question very much appreciated

Grassmere Ltd designs and manufactures lawn mowers.

A typical mower has a commercial life of three years. Analysis of demand for 300 types of mower found that 75 enjoyed high demand throughout their commercial lives, 180 moderate demand and 45 low demand.

Grassmere has recently developed a new mower that has incurred research and development costs of £90,000.

A selling price of £200 for the new mower has been agreed and estimates of future sales volume are shown below:

Above average
demand
Average demand
No. of mowers Below average
demand
No. of mowers No. of mowers
Year 1 14,000 9,000 4,500
Year 2 27,000 19,000 11,000
Year 3 9,000 5,000 3,500

Variable costs are £60 per mower. Sales revenue will be received and variable costs paid at the end of the year in which they arise. Additional fixed costs amount to £400,000 per annum and are payable at the end of each year.

New production machinery costing £1,900,000 will need to be purchased if the new mower were to be produced and will be located in an area of one of Grassmere’s factories that is currently let out for a rent of £240,000 per annum, receivable at the end of each year. The machinery has no scrap value at the end of three years.

The company has a cost of capital of 16% per annum.

Calculate the expected net present value for the manufacture and sale of the new mower and recommend with reasons whether the mower should be produced.