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Part II. You must show work to get full credit. xiii. Suppose the estimated cash flows for a 3-year project are as shown in the

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Part II. You must show work to get full credit. xiii. Suppose the estimated cash flows for a 3-year project are as shown in the scenario analysis below. If the WACC is 10%, what is the value of the option to abandon the project after one year (ie., immediately after I cash flows occur)? best case base case worst case 30% 40% 30% 1000950 970 990 440 1.1-1-1001-951-901 a. $43.84 b. $78.72 c. $122.56 d. $166.40 e. $201.28 What is the value of the option to abandon if the-100,-95, and -90 cash flows for the worst case scenario are replaced by 1

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