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Companies often come across projects that have positive NPV opportunities in which the company does not invest. Companies must evaluate the value of the option to invest in a new project that would potentially contribute to the growth of the firm. These options are referred to as growth options. Shoe Building Inc. is considering a three-year project that will require an initial investment of $35,000. It has estimated that the annual cash fiows for the project under good conditions will be $40,000 and $11,000 under bad conditions, The firm believes that there is a 60% chance of good conditions and a 40% chance of bad conditions. If the firm is using a weighted average cost of capital of 13%, the expected net present value (NPV) of the project is (Note: Do not round intermediate calculations and round your answer to the nearest dollar.) Shoe Bullding Inc. wants to take a potential growth option into account when calculating the project's expected NPV. If conditions are good, the firm will be able to invest $4,000 in year 2 to generate an additional cash flow of $14,000 in year 3 . If conditions are bad, the firm will not make any further investments in the project. Using the information from the preceding problem, the expected NPV of this project-when taking the growth option into account-is (Note: Do not round intermediate calculations and round your answer to the nearest dollac) Shoe Building Inc's growth option is worth (Note: Do not round intermediate calculations and round your answer to the nearest dollar.)