Growth Option: Decision-Tree Analysis Fethe's Funny Hats is considering selling trademariked, arange-haired curiy wigs for Univeraty of Tennessee fobthali gamen. The purchase cort for a 2-year franchist bo sell the wigs is $20,000. If demand is good ( 40% prooability), then the net cash flows will be 128,000 per year for 2 years. If demand is bed (600. probability), then. the net cash flows will be 56,000 per vear for 2 years. Fethe's cost of capital is 104 . Do not found intermediate calculations. 0. What is the expected NPV of the project? Negative volue, if any, should be indicated by a minus sign, Round your answer to the nearest dollar, 5 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 520,000 , in this case, the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was goed in Years 1 and 2 , it will continue to be good in Years) 3 and 4). Write out the decision tree. Notei The franchise fee payment at the end of Year 2 is known, so it should be discounted at the risk-free rate, which is 6% ts. select the correct deciston tree. A C D The cartect graph is Use decision-tree anialyes to calculate the expected Nipy of this project, Inciuding the option to continue for an additional 2 yeara. Negative valuet, if any, thould be indicated oy a minus sign. Round your answer to the nearest doliar. s