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Refer to Narrative 1 What is the value of the option to expand? $88,294,209 $61,842,325 $75,632,149 $41,963,426 Refer to Narrative 1 What is the NPV of project with option to expand? $50,000,000$10,478,625$11,842,325$16,456214 Toyota is considering introducing a new SUV to the U.S. market The SUV wit intially be introduced only in the metropolitan areas of the U S and the cost of this "limited introduxticn" is $750 milion A financal anabsis of the cash flows from fhis imvostment suggosts that the present value of the cash fows from this invesiment to Toyota will be only $700 milion. If the in hal introduction works out wehl. Toyota could go ahead with a full-scale introduction to the entre market with an addional investment of 52 bilion any time over the next 4 yoars. While the curtent expectation is that the cash flows from having this imestment is only $1 billon, there is considerable uncerlainty about the potental for the SuV leading to significant varance en this estimate. The standard deviation of the project is approximately 30%. The risk-free rale is 2% What is the NPV ot the imsod intiodurfion? - 550 milion. 595 milion 550 mithon $25 malion