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 (NPV) of this project if the project's cost of capital is 10%? $21,358 $26,698 $29,368 $32,038 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. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cath inflow of $1.500 (at the end of year 2). The $3,500 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 -13,000 cash outflow from operations. Additionally, if it abandon the project, the company will have no canh Moms n years 3 and 4 of the project Using the information in the preceding problem. find the expected Ny of thin project when taking the abandonment option to account. $37,852 526,205 $34,940 O $29,117