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Al Amencan Telephones inc. is considering the production of a new cell phone. The propect wall recuire an affer tax investment of s17 million. the

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Al Amencan Telephones inc. is considering the production of a new cell phone. The propect wall recuire an affer tax investment of s17 million. the phone is well ieceived, the propect wil preduce after-fax cash flows of sil millon a vear for 3 wears, but if the market does not like the product, the after-tax cash flows wil be only $2 million per vear. There is a sos probability of both good and bad market condtions. Ail American cas deloy the project a year while it conducts a test to determine whether demand wili be strona or weak. The delar wii not affect the dollar amounts involved for the projects after-fax investment or its after-tax cash flows-enty their timing. Because of the anticipated shifs in not round intermedate calculations. Alound your answers to three decimal places. The best chaice is

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