8. Abandonment options a Aa Herman Co. is cons dering a four-year project that will require an initial investment of $5,00. The base-case cash fows for this project are projected to be $15,000 per year. The best-case cash flows are projected to be $22,000 per year, and the worst-case cash flows are projected to be -$1,500 per year. The compamy's analysts have estimated that there is a sa% probability that the project will generate the base-case ash fons. The analysts aso think that there is a 25% probability of the project generating the best-case cash flows and a 2S% probability of the project generating the worst-case cash flows. What would be the expected net present value (NPV) of this project if the project's cst of capital is 10%? O $35,020 O $33,269 O $42,024 O $38,522 Herman now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $4,000 (at the end of year 2). The $4,000 the company recehves at the end of year 2 is the ifference between the cash the company receives from selling off he project's assets and the company's-$1,500 cash outflow from operations. Additionally, If it abandons the project, the company will have no cash flows in years 3 and 4 of the project. Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account. O $42,198 O $36,694 O $33,025 O $44,033 What is the value of the option to abandon the project