First drop down options:

26,676

48,501

46,076

31,526

Second drop down options:

52,443

47,199

65,554

55,065

Third drop down options:

3942

4533

3548

3154

4730

2. Growth options of the option to invest in a new project that would potentially contribute to the growth of the firm. These options are referred to astions. Consider the case of Mitata Co.: Mitata Co. is considering a three-year project that will require an initial investment of $45,000. It has estimated that the annual cash flows for the project under good conditions will be $60,000 and $9,000 under bad conditions. The firm believes that there is a 60% chance of good conditions and a 40% chance of bad conditions. If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is your answer to the nearest whole dollar.) Mitata Co. wants to take a potential growth option into account when calculating the project's expected NPV. If conditions are good, the firm will be able to invest $4,000 in year 2 to generate an additional cash flow of $14,000 in year 3 . If conditions are bad, the firm will not make any further investments in the project. Using the information from the preceding problem, the expected NPV of this project-when taking the growth option into account-is (Note: Round your answer to the nearest whole dollar.) Mitata Co.'s growth option is worth (Note: Round your answer to the nearest whole dollar.)