Aggarwal Enterprises is considering a new project that has a cost of $1,0oo,ooo, 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 NPV this Prob x t 1 t 2 t-3 State NPV Prob 20% $850.0 $850.0 $850.0 $1,059.2 $211.8 Prob 60% -$1,000 $520.0 $520.0 $520.0 $259.8 $155.90 Prob 20% -$220.0 $220.0 $220.0 -$1,533.0 306.6 Exp. NPV $61.2 O a. $58.4 O b. $67.1 O ct. $66.5 O d. $67.8 O e, $75.2