only need help with the last question

b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this cas the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2, it will continue to be good in Years 3 and 4). Write out the decision tree. No The franchise fee payment at the end of Year 2 is known, so it should be discounted at the risk-free rate, which is 6% Select the correct decision tree. B C = 0 11% 0 1 3 405 POD20000 20000 28000 28000 28.000 Good - 20000 (0%) 40% por 30.000 28.000 28000 28000 28000 Good 20.000 (65) 40 Pob Good 20000 28000 28000 28000 28000 20.000 (118) ted B BOP Bad Boob 80P - 20000 3000 3000 3000 3000 20000 3000 3000 0 0 20000 3000 3000 D 40% Pb Good 11 2 . 20.000 3000 3000 3000 3000 - 20.000 () Bad 00 - 20000 20000 2000 The correct is Ustdesentree analysis to all the spected NPV of this project, induding the option to continue for an additional 2 years. Negative valves, it should be indicated by a minus in Hound your or to the nearest doar b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this cas the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2, it will continue to be good in Years 3 and 4). Write out the decision tree. No The franchise fee payment at the end of Year 2 is known, so it should be discounted at the risk-free rate, which is 6% Select the correct decision tree. B C = 0 11% 0 1 3 405 POD20000 20000 28000 28000 28.000 Good - 20000 (0%) 40% por 30.000 28.000 28000 28000 28000 Good 20.000 (65) 40 Pob Good 20000 28000 28000 28000 28000 20.000 (118) ted B BOP Bad Boob 80P - 20000 3000 3000 3000 3000 20000 3000 3000 0 0 20000 3000 3000 D 40% Pb Good 11 2 . 20.000 3000 3000 3000 3000 - 20.000 () Bad 00 - 20000 20000 2000 The correct is Ustdesentree analysis to all the spected NPV of this project, induding the option to continue for an additional 2 years. Negative valves, it should be indicated by a minus in Hound your or to the nearest doar