Aggarwal Enterprises is considering a new project that has a cost of $1,000,000, and the CFO set up the following simple decision tree to show its three most-likely scenarios. The firm could arrange with its work force and suppliers to cease operations at the end of Year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. How much is the option to abandon worth to the firm? WACC = 11.5% Dollars in Thousands t=0 20% NPV this t=1 $850.0 Probx t=2 $850.0 t=3 State $850.0 $1,059.2 NPV $211.8 Prob = Prob = 60% $1,000 $520.0 $520.0 $520.0 $259.8 $155.9 Prob = 20% -$220.0 -$220.0 - $220.0 -$1,533.0 $306.6 Exp. NPV= $61.2 a. $67.8 b. $66.5 O c. $58.4 d. $75.2 O e. $67.1