D Question 6 6 pts Your firm is considering an oil drilling project. The ct will cost $21 million after-tax today and is expected to generate after-tax cash flows of $9 million per year at the end of the next 4 years. If the company waits for 2 years, the project will cost $25 million after-tax and there is a 95% chance that the project will generate $12 million per year for four years and a 5% chance that the project will generate $8 million per year for 4 years. Assume all cash flows are discounted at 12%. The project's expected NPV if your firm chooses to drill today - $ million. The value of this investment timing option = $ million. Round your final answers to 2-decemial places. Should your company wait 2 years before deciding whether to drill - "yes" or "no" Prob (96) t-0 t-1 t = 2 t=3 t-4 t=5 t-6 -21 9 9 9 95 -25 12 12 12 12 th 5 25 8 8 8 8 8 D Question 7 6 pts Your company is considering a project with the following after-tax cash flows (in millions) Outcome Probability (%) t=0 t-1 t-2 t = 3 Good 50 -14 10 7 10 So-so 50 -14 5 3 5 If the outcome is good, the project would open the door to another investment project which would required an outlay of $9 million at the end of Year 2. The new project would then be sold to another company netting $15 million after-tax at the end of Year 3. All cash flows are to be discounted at 12%. The project's expected NPV without the real option - $ million. The project's expected NPV with the growth option = $ million. The value of the growth option = $ million Round your final answers to 2-decemial places