Project UNION has an initial after-tax cost of $150,000 at t=0. The project is expected to produce after-tax CFs of $58,000 for the next three years. The projects WACC is 9%.

The projects CFs depend critically upon customers acceptance of the product. Theres a 70% probability that the product will be successful and generate annual after-tax CFs of $90,000, and a 30% probability that it will not be successful and hence produce annual after-tax CFs of -$25,000. Should the company abandon the project after a year?