Project Falcon has an upfront after-tax cost of $100,000. The project is expected to produce after-tax cash flows of $35,000 at the end of each of the next four years. The project has a WACC of 11%. However, if the company waits a year, they will find out more information about market condition and its effect on the projects expected after-tax cash flows. If they wait a year, Theres a 60% chance that the market will be strong and the expected after-tax CFs will be $45,000 a year for four years. Theres a 40% chance that the market will be weak and the expected after-tax CFs will be $25,000 a year for four years. Projects initial after-tax