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12) Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each

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12) Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%. The NPV for this project is closest to: A) $6,250 B) $14,100 90,000+ 117, ow C) $10,000 D) $18,600 - 350

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