8. Abandonment options Albert Co. is considering a four-year project that will require an initial investment of $12,000. The base come cash flows for the wed to be $14,000 per year. The best case cash flows are projected to be $26,000 per year, and the worst come cash flowers are projected to be year. The company's analysts have estimated that there is a 50% probability that the project will generate the base one canow. The think that there is a 25% probability of the project generating the best case cash flows and a 25% probability of the project generating the worst.com cash flows What would be the expected net present value (NPV) of this project if the project's cost of capital is 12947 $25,587 $29,425 $30,704 523,028 Albert now wants to take into account its ability to abandon the project at the end of year 2 the roleh cash flows. If it decides to abandon the project at the end of year 2, the company will receive a nech of 6.750 2). The $4,750 the company receives at the end of year 2 is the difference between the cash the comany receives from the and the company's - $4,500 cash outflow from operations. Additionally, if it abandons the project, the company with 4 of the project Using the information in the preceding problem, find the expected NPV of this project when taking the abandonmentation to co $37,631 $28,947 $30,394 $36,154 What is the value of the option to abandon the project