Assume that you have just been hired as a financial analyst by Tropical Sweets Inc. a mid-sized California company that specializes in creating exotic candies from tropical fruits. The firm's ECO has asked you to prepare a brief on possible outcomes of the project the company is planning. a) Tropical Sweets is considering a project that will cost $100 million and will generate expected cash of $46 million per year for three year. The cost of capital for this type of project is 10% and the risk-free rate is 6%.. After discussions with the marketing department, you learn that there is a 60% chance of high with demand with future cash flows of $60 million per year. There is a 40% chance of low demand, with cash flows of only $25 million per year. What is the expected NPV and CV of the project as is? b) Now suppose the project cannot be delayed. But if Tropical Sweets implements the project there will exist an opportunity to rerun the project if the outcomes are favorable, thus there exists a growth option. The firm will have an opportunity to replicate the original project at the end of its life, if it adds value (for a total of 6 years). What is total expected NPV and CV of the project with the growth option? Discount all cash flows at WACC