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8. Abandonment options Acme Co. is considering a four-year project that will require an initial investment of $5,000. The base-case cash flows for this project

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8. Abandonment options Acme Co. is considering a four-year project that will require an initial investment of $5,000. The base-case cash flows for this project are projected to be $12,000 per year. The best-case cash flows are projected to be $20,000 per year, and the worst-case cash flows are projected to be -$1,000 per year. The company's analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 2596 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 cost of capital is 14%? O $23,691 O $30,271 O $26,323 O $21,058

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