1. A firm has the following cash flows streams for a potential real option:

No abadonment:
Prob		0	1	2	3
0.6		$ (100,000)	$ 90,000	$ 90,000	$ 90,000
0.4		$ (100,000)	$ (50,000)	$ (50,000)	$ (50,000)
Abandonment:
Prob		0	1	2	3
0.6		$ (100,000)	$ 90,000	$ 90,000	$ 90,000
0.4		$ (100,000)	$ (50,000)

What is the expected NPV is the firm cannot abandon the project? Use a WACC of 10% for this part and the next.