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If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is (Note: Round

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If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is (Note: Round your answer to the nearent whole dollwry Mitata C0. Wants to take a potential growth option into account when calculating the project's expected NipN. If cond d, the firm will be able to invest $6,000 in year 2 to generate an additional cash flow of $21,000 in year 3 , If conditions are bad, the fi ake arw further investmants in the project. Using the information from the preceding problern, the expected NPV of this project-when taking the growth option (Note: Round your answer to the nearest whole dollar.) If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is vour answer to the nearest whole dollar.) Mitata Co. wants to take a potential growth option into account when caiculating the project's expected NPV. If conditions are good, tf able to invest $6,000 in year 2 to generate an additional cash flow of 321,000 in year 3 . If conditions are bad, the firm will not make investments in thin profect. Using the information from the preceding problem, the expected NPV of this project-when taking the growth option into account-is (Note: Round vour anower to the nearest whole dollar.) Mitata cols orowth eption is worth (Note: Round your answer to the nearest whole dollar.) your answer to the nearest whole dollar.) Mitata Co. wants to take a potentia $6,209 ption into account when calculating the project's expected NPV. If conditions able to invest $6,000 in year 2 to $6,504 h additional cash flow of $21,000 in year 3 . If conditions are bad, the firm wi investments in the project. $6,800 Using the information from the pre $5,913 hitem, the expected NPV of this project-when taking the growth option into (Note: Round your answer to the $5,617 ole dollar.) Mitata Cois orowth option is worth (Note: Round your answer to the nearest whole dollar.) Companies often come across projects that have positive NPV opportunities in which the company does not invest, Companies must evaluate the value of the option to irvest in a new prolect that would potentially contribute to the orowth of the firm. These options are referred to as growth cotions. Consider the case of Mitata Co: Mitata Co, is considering a three-year project that will require an initial investment of $45,000, It has estimated that the annual cash flows for the project under good conditions will be $80,000 and $5,000 under bad conditions. The firm befievas that there is a 60%. chance of good conditions and a 40% chance of bad conditions. If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is (Note: Round your answer to the nearest whole dollas,) Mitata Co. wants to take a potential growth option into account when calculating the project's expected NPV. If conditionis are pood, the firm will be able to invest $6,000 in year 2 to generate an additional cash flow of $21,000 in vear 3 . If conditions are bad, the firm wiil not make any further investrients in the project. Using the information from the preceding problem, the expected fapV of this profect-whien tailing the orowth option into accaunt-is (Note: Round vour answer to the nearest whole dollar.) If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is (Note: Round your answer to the nearent whole dollwry Mitata C0. Wants to take a potential growth option into account when calculating the project's expected NipN. If cond d, the firm will be able to invest $6,000 in year 2 to generate an additional cash flow of $21,000 in year 3 , If conditions are bad, the fi ake arw further investmants in the project. Using the information from the preceding problern, the expected NPV of this project-when taking the growth option (Note: Round your answer to the nearest whole dollar.) If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is vour answer to the nearest whole dollar.) Mitata Co. wants to take a potential growth option into account when caiculating the project's expected NPV. If conditions are good, tf able to invest $6,000 in year 2 to generate an additional cash flow of 321,000 in year 3 . If conditions are bad, the firm will not make investments in thin profect. Using the information from the preceding problem, the expected NPV of this project-when taking the growth option into account-is (Note: Round vour anower to the nearest whole dollar.) Mitata cols orowth eption is worth (Note: Round your answer to the nearest whole dollar.) your answer to the nearest whole dollar.) Mitata Co. wants to take a potentia $6,209 ption into account when calculating the project's expected NPV. If conditions able to invest $6,000 in year 2 to $6,504 h additional cash flow of $21,000 in year 3 . If conditions are bad, the firm wi investments in the project. $6,800 Using the information from the pre $5,913 hitem, the expected NPV of this project-when taking the growth option into (Note: Round your answer to the $5,617 ole dollar.) Mitata Cois orowth option is worth (Note: Round your answer to the nearest whole dollar.) Companies often come across projects that have positive NPV opportunities in which the company does not invest, Companies must evaluate the value of the option to irvest in a new prolect that would potentially contribute to the orowth of the firm. These options are referred to as growth cotions. Consider the case of Mitata Co: Mitata Co, is considering a three-year project that will require an initial investment of $45,000, It has estimated that the annual cash flows for the project under good conditions will be $80,000 and $5,000 under bad conditions. The firm befievas that there is a 60%. chance of good conditions and a 40% chance of bad conditions. If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is (Note: Round your answer to the nearest whole dollas,) Mitata Co. wants to take a potential growth option into account when calculating the project's expected NPV. If conditionis are pood, the firm will be able to invest $6,000 in year 2 to generate an additional cash flow of $21,000 in vear 3 . If conditions are bad, the firm wiil not make any further investrients in the project. Using the information from the preceding problem, the expected fapV of this profect-whien tailing the orowth option into accaunt-is (Note: Round vour answer to the nearest whole dollar.)

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