15. Project HILLSIDE has an upfront after-tax cost of $100,000. The project is expected to produce after-tax cash flows of $45,000 at the end of each of the next 4 years. The project has a WACC of 10%.

However, if the company waits a year, they will find out more information about market condition and its effect on the projects expected after-tax cash flows. If they wait a year,

Theres a 50% chance that the market will be strong and the expected after-tax CFs will be $55,000 a year for four years.

Theres a 50% chance that the market will be weak and the expected after-tax CFs will be $35,000 a year for four years.

Projects initial after-tax cost (at t=1) will still be $100,000.

Should the company go ahead with the project today or wait for one more year?