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Use this information to answer the next two questions. Subway Sandwiches is considering purchasing a license from The University of Tennessee to use its name on a a new sandwich, the 'Vols Beat Bama Tuna.' A 2 -year license costs $50,000. If the sandwich is well-received, then Subway will receive $100,000 per year for 2 years. The probability of this is 40%. If the sandwich isn't well-received, then Subway will receive $15,000 per year for 2 years. The probability of this is 60%. However, if the sandwich is well-received, then Subway can renew the license at the end of 2 years for another payment of $50,000 and receive the same cash flows that it received in the previous 2 years for another 2 years. Subway will only renew the license if it is optimal to do so. 25. Which of the following decision trees shows the correct way to calculate the project's expected NPV? 26. Which of the following decision trees would you use to calculate P (the price of the underlying asset) for the BSOPM application of a financial option to value the real growth option above? Correct