Carlson Inc, is evaluating a project in India that would require a $5.5 million after-tax investment today (t=0). The after-tax cash flows would depend on whether India imposes a new property tax. There is a 50-50 chance that the tax will pass, in which case the project will produce after-tax cash flows of $1,150,000 at the end of each of the next 5 years. If the tax doesn't pass, the after-tax cash flows will be $1,950,000 for 5 years. The project has a WACC of 12.0\%. The firm would have the option to abandon the project 1 year from now, and if it is abandoned, the firm would receive the expected $1.15 million cash flow at t=1 and would also sell the property and receive $4.85 million after taxes at t=1. If the project is abandoned, the company would receive no further cash inflows from it. What is the value (in thousands) of this abandonment option? Do not round intermediate calculations. a. $87 b. $781 c. $606 d. $963 e. 5693 Carlson Inc, is evaluating a project in India that would require a $5.5 million after-tax investment today (t=0). The after-tax cash flows would depend on whether India imposes a new property tax. There is a 50-50 chance that the tax will pass, in which case the project will produce after-tax cash flows of $1,150,000 at the end of each of the next 5 years. If the tax doesn't pass, the after-tax cash flows will be $1,950,000 for 5 years. The project has a WACC of 12.0\%. The firm would have the option to abandon the project 1 year from now, and if it is abandoned, the firm would receive the expected $1.15 million cash flow at t=1 and would also sell the property and receive $4.85 million after taxes at t=1. If the project is abandoned, the company would receive no further cash inflows from it. What is the value (in thousands) of this abandonment option? Do not round intermediate calculations. a. $87 b. $781 c. $606 d. $963 e. 5693