8. Abandonment options Shan Co. is considering a four-year project that will require an initial investment of $15,000. The base-case cash flows 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 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 25% probability of the project generating the best-case cash flows and a 25% 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 11%? $19,335 O $22,961 O $24,169 O $27,794 Shan now wants to take intoo account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario sh inflow of $3,000 (at the cash flows. If it dec to abandon the project at the of year 2, the company will receive a one-time year 2). The $3,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project's assets and the company's -$1,500 cash outflow from operations. Additionally, if it abandons the project, the company willl 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 $1,434 O$25,603 $1,506 $28,163 $1,076 O$32,004 $1,291 $23,043 $1,577 What is the value of the option to abandon the project