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Question 21 10 points Save Ans Exhibit III The cash flows of a two-year project when demand turns out to be highand when demand Burns

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Question 21 10 points Save Ans Exhibit III The cash flows of a two-year project when demand turns out to be "highand when demand Burns out to be "low" are presented below. The probability that demand will be "high" is 50% and the probability that demand will be "low" is 50%. Assume that 10% is the appropriate discount rate Cash flow if Cash flow in demand is "high" demand is "low" Year 0 -S100 -S100 Year 1 S100 $50 Year 2 $100 $50 If demand turns out to be "low," the firm has the option to stop the project at the end of Year 1 (after the Year 1 cash flow is realized) and sell the project's equipment for an after-tax salvage value of $55. What is the expected NPV considering this abandonment option? Round your final answer to the nearest dollar. Choose the best answer without decimal.. O a $35 b. $10 Oc. $30 d. $20

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