b$.$ If Fethe makes the investment today, then it will have the option to renew the franchise fee for $2$ more years at the end of Year $2$ for an additional payment of $$20,000.$ In this case, the cash flows that occurred in Years $1$ and $2$ will be repeated $($so if demand was good in Years $1$ and $2,$ it will continue to be good in Years $3$ and $4).$ Write out the decision tree. Note: The franchise fee payment at the end of Year $2$ is known, so it should be discounted at the risk$-$free rate, which is $6\%.$ Select the correct decision tree.

A

C

D

The correct graph is

Use decision$-$tree analysis to calculate the expected NPV of this project, including the option to continue for an additional $2$ years. Negative values, if any, should be indicated by a minus sign. Round your answer to the nearest dollar.

$