A preliminary analysis of a project indicates the following:

NPV of Project
Scenario	Year	CF mil.	Unconditional Probability	PVF	CF*Prob.*PVF
Initial	0	-50	100%	1	-50.000
H	1	25	70%	0.90909	15.909
L	1	10	30%	0.90909	2.727
HH	2	85	49%	0.82645	34.421
HL	2	70	21%	0.82645	12.149
LH	2	45	12%	0.82645	4.463
LL	2	20	18%	0.82645	2.975
				NPV	22.645

A financial analyst uncovers additional information not incorporated in the calculations above:

• In year 1, if scenario equals L, the firm can abandon operations and realize a liquidation value of $30 million from its assets.

Using the DTA approach, answer the following two questions:

1. What is the NPV of the project?

2. What is the NPV of the option to abandon?