Please show all formulas after filling in chart. Please explain all work and highlight/bold answers. Place answers in chart please.

Investment Timing Option: Decision-Tree Analysis Wilbert Hotels is interested in developing a new hotel in Seoul. --The company estimates that the hotel would require an initial investment listed. --Wilbert expects the hotel will produce positive cash flows of the amount listed. --The number of years the project will produce postive cash flows is listed. --The project's cost of capital is listed. Initial Investment $(22.00) million Positive Cash flow per year $3.43 million Number of years 20 Cost of Capital 12.8% . a. What is the project's net present value? Show work/formula Highlight/bold answer b. Wilbert expects that the cash flows are the initial amount referred to above. It recognizes, however, that the cash flows could be much higher or lower, depending on whether the Korean government imposes a large hotel tax. --One year from now, Wilbert will know whether the tax will be imposed. --There is a 50% chance that the tax will be imposed, in which case the yearly cash flows will decrease to the amount listed. --At the same time, there is a 50% chance that the tax will not be imposed, in which case the yearly cash flows will increase to the amount listed. --Wilbert needs to decide whether to proceed with the hotel project today or to wait a year to find out whter the tax will be imposed. -- If Wilbert waits a year, the initial investment and cost of capital will remain the same. $2.05 million If tax is imposed, positive cash flow per year If tax is not imposed, positive cash flow per year $4.80 million $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 Show work/formula Highlight/bold answer $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 --Assume that all cash flows are discounted at the cost of capital. --Use decision-tree analysis to determine don't whether Wilbert should proceed with the project today or wait a year before deciding. --Use the decision trees constructed below to analyze the wait and no wait scenarios. --Calculate the NPV for each wait or no-wait scenario. Remember to take into account the chance of each NPV happening. Please fill in the following text boxes below and show work. Show all formulas and highlight/bold final answers. Year o la NPV of Project million 1b Now: Year 0 Future Cash Flows Year 2 Probability Year1 Year 20 NPV of this scenario 0.5 $ 4.80 $ 4.80 $ 4.80 $ 4.80 million $ No Taxes (22.00) Taxes $ 0.5 1 2.05 $ 2.05 $ 2.05 $ 2.05 million Expected value of NPV Future Cash Flows Now: Year 0 Probability Year1 Year 2 Year 21 NPV of this scenario No Taxes 0.5 $ (22.00) $ 4.80 $ 4.80 Wait Taxes 0.5 0 0 0 1 Expected value of NPV --Should Wilbert wait to invest? Why or why not? Please explain. Investment Timing Option: Decision-Tree Analysis Wilbert Hotels is interested in developing a new hotel in Seoul. --The company estimates that the hotel would require an initial investment listed. --Wilbert expects the hotel will produce positive cash flows of the amount listed. --The number of years the project will produce postive cash flows is listed. --The project's cost of capital is listed. Initial Investment $(22.00) million Positive Cash flow per year $3.43 million Number of years 20 Cost of Capital 12.8% . a. What is the project's net present value? Show work/formula Highlight/bold answer b. Wilbert expects that the cash flows are the initial amount referred to above. It recognizes, however, that the cash flows could be much higher or lower, depending on whether the Korean government imposes a large hotel tax. --One year from now, Wilbert will know whether the tax will be imposed. --There is a 50% chance that the tax will be imposed, in which case the yearly cash flows will decrease to the amount listed. --At the same time, there is a 50% chance that the tax will not be imposed, in which case the yearly cash flows will increase to the amount listed. --Wilbert needs to decide whether to proceed with the hotel project today or to wait a year to find out whter the tax will be imposed. -- If Wilbert waits a year, the initial investment and cost of capital will remain the same. $2.05 million If tax is imposed, positive cash flow per year If tax is not imposed, positive cash flow per year $4.80 million $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 $ 3.43 Show work/formula Highlight/bold answer $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 $ 2.05 $ 4.80 --Assume that all cash flows are discounted at the cost of capital. --Use decision-tree analysis to determine don't whether Wilbert should proceed with the project today or wait a year before deciding. --Use the decision trees constructed below to analyze the wait and no wait scenarios. --Calculate the NPV for each wait or no-wait scenario. Remember to take into account the chance of each NPV happening. Please fill in the following text boxes below and show work. Show all formulas and highlight/bold final answers. Year o la NPV of Project million 1b Now: Year 0 Future Cash Flows Year 2 Probability Year1 Year 20 NPV of this scenario 0.5 $ 4.80 $ 4.80 $ 4.80 $ 4.80 million $ No Taxes (22.00) Taxes $ 0.5 1 2.05 $ 2.05 $ 2.05 $ 2.05 million Expected value of NPV Future Cash Flows Now: Year 0 Probability Year1 Year 2 Year 21 NPV of this scenario No Taxes 0.5 $ (22.00) $ 4.80 $ 4.80 Wait Taxes 0.5 0 0 0 1 Expected value of NPV --Should Wilbert wait to invest? Why or why not? Please explain