Newtown Propane Co. is considering a three-year project that will require an initial investment of $44,000. If market demand is strong, Newtown Propane Co. thinks that the project will generate cash flows of $29,500 per year. However, if market demand is weake the company believes that the project will generate cash flows of only $1,500 per year. The company thinks that there is a chance that demand will be strong and a 50% chance that demand will be weak. If the company uses a project cost of capital of 14%, what will be the expected net present value (NPV) of this project? $7,614 $6,412 $8,015 $6,813 will be strong or weak. If the company chooses to delay the project, it will have to give up a year of cash flows, because the project will then be only a two-year project. However, the company will know for certain if the market demand will be strong or weak before decing to invest in If the company accepts the project now, it would mean that the company is investment timing option is one year. Considering these qualitative factors, the company What will be the expected NPV if Newtown Propane Co. delays starting the project? (Note: Use the cost of capital to discount all cash flows.) $2,007$1,706$4,014$10,022 What is the value of Newtown Propane Co.'s option to delay the start of the project? $4,014 $2,007 $1,706$10,022