Acme 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 cash flows What would be the expected not present value (NPV) of this project if the project's cost of capital in 14%? O $19,607 $26,143 $21,786 @ $17.429 Acme now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash intlow of $4,500 (at the end of year 2). The $4,500 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 will have no cash flows in years) 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 524 586 $30,440 $23,415 $21,074 What would be the expected net present Value (NPV) of this project if the project's cost of capital is 14%? $19,607 $26,143 $21,786 O $17,429 Acme now wants to take into account is ability to abandon the project at the end of year 2 if the project ends op generating the worst case sono cash flows. If it decides to abandon the project at the end of year, the company will receive a one time net cash inflow of $4,500 (at the end of year 2). The $1,500 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the projects and the company's - $1,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 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. $24,586 $30,440 $23,415 $21,074 What is the value of the option to abandon the project