4. Investment timing options Companies often need to choose between msking an investment now or waiting until the company can gather more relevant information about the potential project. This opportunity to wait betore making the dicision is called the investment timing option. Consider the case: St. Maroaret Beer Co0, is considering a three-year project that will require an initial investment of s42,500. If market demand is streng. St. Marparet Beer Co. thinks that the project will generate cash flaws of $28,500 per yeac, However, if mavket demand is weak, the company believes that the project will generate cash flows of only $1,250 per year. The compary thinks that there is a sow chance that demand will be strong and a 50% chance that demand will be weak. If the company uses a project cost of capital of 115 , what wil be the expected net present value (NPV) of this project? (Note: Do not round intermediate calculations andround your answer to the nearest whole dollac) 17,072 76,150 56,458 57,386 5t. Margaret Beer Co. hat the option to delay starting this project for one year so thut andysts can gather more information abeut whether demand. twoveac project. Howeves, the compary wal know for certain if the market demand will be strong or weak before deciding to invest in it? What wil be the expected NDV if St. Marganet Beer Co, delyn starting the project) (Note: Do not round intermediate calculations arid round your aeswer to the nearest whole dollar) 53,409 +2,84t $5,991 54,976 What is the valve of st, Nerearet Beer Co y option to delay the sart of the propect? (Note Oo not reund intermediate calculations and round vour anserer to the hearest whole dolibr) $3,400 58,976 50,001