Move It or Lose It Company is a removal business founded by a group of friends who invested $600,000 to acquire 3 trucks. The expected cash flows for years 1-5 are as follows: - Boom scenario: $200,000 each year - Base scenario: $160,000 each year - Recession scenario: $50,000 each year If the company realises they are in the Recession Scenario, they could sell the trucks in year 1 and receive $470,000 after tax and liquidate the business. Using this information and the additional information provided on the spreadsheet for Question please calculate the value of the Option to Abandon. $ Discount Rate Scenario Boom Base Recession Scenario Boom Base Recession 8% Prob 30% 45% 25% Prob 30% 45% 25% Option to Abandon NPV NPV 0 0 1 1 Cash Flows 2 Cash Flows 3 2 5 5