Herman Co. is considering a four-year project that will require an initial investment of $5,000. The base-case cash flows for this project are projected to be $12,000 per year. The best-case cash flows are projected to be $19,000 per year, and the worst-case cash flows are projected to be - $3,000 per year. The company's analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst- case cash flows What would be the expected net present value (NPU) of this project if the project's cost of capital is 13%? $23,508 $29,694 $24,745 $19,796 Herman now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. Ir it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $4,000 (at the end of year 2). The 54,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project's assets and the company's -$3,000 cash outflow from operations. Additionally, if it abandons the project, the company wit have no cash Mows in years 3 and 4 of the project Using the information in the preceding problem, find the expected NPV of this project when taking the absederment option into account 527.095 535,224 $29.805 $24,36 Herman now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow o end of year 2). The 54,000 the company receives at the end of year 2 is the difference between the cash the company receives from project's assets and the company's -$3,000 cash outflow from operations. Additionally, if it abandons the project, the company will in years 3 and 4 of the project. Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into acco $27,095 $35,224 $29,805 $24,386 What is the value of the option to abandon the project