Companies often need to choose between making an investment now or waiting till the company can gather more relevant information about the potential project. This opportunity to wait before making the decision is called the investment timing option Consider the case: Newtown Propane Co. is considering a three-year project that will require an initial investment of $42,500. If market demand is strong, Newtown Propane Co. thinks that the project will generate cash flows of $28,000 per year. However, if market demand is weak, the company believes that the project will generate cash flows of only $1,750 per year. The company thinks that there is a 50% chance that demand will be strong and a 50% chance that demand will be weak. If the company uses a project cost of capital of 13%, what will be the expected net present value (NPV) of this project if the company is ignoring the timing option? -$8,854 O -$7,747 O -$5,90:2 -$7,378