A: American Jelephones inc. is considering the production of a new cel phone. The project will require an after-tax investment of $13 masion. If the phione is weil received, the project will produce after-tax cash fows of $8 milion a year for 3 yesrs, but if the market does not like the product, the after-tax cash fiows will be only $2 milion per year. There is a 50% probabilty of both good and bad market conditions. All American can delay the project a year while it conducts a test to determine whether demand will be strong or weak. The delay will not affect the dollar amounts involved for the project's after tax investment or its afertax cash fiows-only their timing. Because of the anticipated stifts in technology, the 1-yeor delay means that after-tax cash fows will continue oniy 2 years after the initial investment is made. AlAmerican's WACC is 11%. What action do you recommend? Enter your answers in mulions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to three decimal phaces NoV without waiting: $ _ milion NPV of walting 1 years $ milion The best choice is