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 pro,ected to be $12,000 per year. The best-case cash fiows are projected to be $19,000 per year, and the warst-case cash flons are projected to be $3,000 per year. The company's analysts have estimsted that there is a 50% probability that the project will generate the base-case cash fiows. 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 Hlons. What would be the expected net present vslue (NFV) of this praject if the project's cost af capital is 135 ? $17,694$14,745$16,220$16,957 Acme now wants to take into account its ability to abandon the project at the end of year z if the project ends up generating the worst-case scenario cash flons. If it decides to abandon the project at the end of year 2 , the company will recelve a ane-time net cash infiow of $3, Doo fat the end of year 2). The $3,000 the company receives at the end of yesr 2 is the difference between the cash the company receives from seling off the project's assets and the company's $3,000 cash outfow from operations. Additionally, if it absndons the pro;ect, the company aill have no cash flons 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 absndonment option into account. $20,280$21,125$16,900$21,970 What is the value of the option to abandon the project