Question 14 of 15 estion 14 2 points Save Ans The Z-90 project being considered by Steppingstone Incorporated (SI) has an up-front cost of $250,000. The project's subsequent cash flows are critically dependent on whether another of its products, Z-45, becomes an industry standard. There is a 50% chance that the Z-45 will become the industry standard, in which case the Z-90's expected cash flows will be $110,000 at the end of each of the next 5 years There is a 50% chance that the Z-45 will not become the industry standard, in which case the Z-90's expected cash flows will be $25,000 at the end of each of the next 5 years. Assume that the cost of capital is 12%. Now assume that one year from now SI will know if the Z-45 has become the industry standard Also assume that after receiving the cash flows at t 1, SI has the option to abandon the project, in which case it will receive an additional $100,000 at t-1 but no cash flows after t-1. Assuming that the cost of capital remains at 12%, what is the estimated value of the abandonment option? O $2,075 O $4,067 O $8,945 O $10,745 Question 14 of 15 ) Moving to another question will save this response 31 PM