A company is considering a capital project with the following characteristics:

The initial outlay is $500,000. Project life is four years. Annual after-tax operating cash flows have a 40 percent probability of being $90,000 for the four years and a 60 percent probability of being $180,000. Salvage value at project termination is zero. The required rate of return is 10 percent. In one year, after realizing the first-year cash flow, the company has the option to abandon the project and receive the salvage value of $350,000.

1-What is the projects NPV assuming no abandonment?

a) -2,436.52

b) -5,500.99

c) -24,368.45

d) -43,539.38

e) -57,369.34

2-What is the projects NPV using the abandonment option?

a) 2,345.47

b) 18,368.48

c) 27,378.45

d) 32,639.87

e) 40,383.85

NEED to see the work and formulas PLZ. Will rate! :)