Peet Properties is considering buving a land for $1.2 million. Peet plans to spend another $5 million today (t 0) to build a factory. The after tax factory generates will depend on whe (50%:50%). cash flows the ther the state imposes new property tax If the tax passes, the factory will produce after tax cash flows of .000 at the end of each of the next 5 years. And if not, the factory will produce after tax cash flows of $2.000.000 for the next years. The project has a wACC of 12%. If the factory is unsuccessful, the firm will have the option to abandon the project 1 year from now if the tax passes. If the factory project is abandoned. the property can be sold in 1 year for 86 million. Once the project is abandoned, the company would no longer receive any cash inflows from it. What is the value of this abandonment option? a. What is the expected NPV if the company does not have the option to abandon the project? (Draw the decision tree)