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Branch Entertrises is considering a netw project that hav a cost of $1,000,000, and the CFO set up the following simple decision tree to thow

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Branch Entertrises is considering a netw project that hav a cost of $1,000,000, and the CFO set up the following simple decision tree to thow its three most likely sceratios. The firm could arrange with sts work force and supptiers to cease operations at the rad of Ycar 1 should it choose to do so, but to obesin this abandonment optioth, it would have to make a payment to those parties. Hom much is the option to abanidon worth te the firm? [Hint calculate the E[NPV] with the abandonment option implemrated An abandoamarat option is implemented if operations can be ahandoned to teduce further losses. 1 a.545.77

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