Fethe's funmy Hats is considering selling trademarked, orange haired curly wigs for University of Tennessee football games. The purchase cost for a 2 -year franchise to sett the wigs is $20,000. If demand is 900d (40\% probability), then the net cash flows will be $28,000 per year for 2 years. If demand is bad ( 60% probability), then the net cash nows will be $7,000 per vear for 2 vears. Fethe's cost of capital is 11%. Do not round intermediate calculations. a. What is the expected NPV of the project? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest dollar. $ b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this case, the cash flows that cccurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2 , it will continue to be good in Vears 3 and 4 ). Write out the decision tree. Noter The franchise fee payment at the end of Year 2 is known, so it shouid be discounted at the risk-free rate, which is 8%. Select the correct decision tree. The correct graph is Use decistonetree analysis to calculate the expected NPV of this project, including the option to continue for an additional 2 vears. Negative values, if any, should be indicated by a minus sign. Round your answer to the nearest dollar. s