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Chrustuba Inc. is evaluating a new project with an after-tax cost of $9.4 million at t=0. There is a 50% chance that the project would

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Chrustuba Inc. is evaluating a new project with an after-tax cost of $9.4 million at t=0. There is a 50% chance that the project would be highly successful and generate annual after-tax cash flows of \$6.2 million during Years 1, 2, and 3 . However, there is a 50% chance that it would be less successful and would generate anmunl after-fax eash flows of only \$1 million for each of the 3 years. If the project is highly successfial, it would open the door for another after-tax investment of $10 nillion at the end of Year 2, and this new insestment could be sold for \$20 million after taxes at the end of Year 3 . Assuming a WACC of 10.0%, what is the project's expected NPV (in thousands) after taking into-account this growth option? Do not round intermediate calculations. a. $5,867 b. 54,371 ci: 52.934 d. 54,167 e. 53.288

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