Question 30 (1 point) Suppose you are working on a pilot project that will cost half a million ($ 500K) and will require one year to complete. The probability of success of this pilot project is 50% Upon the successful phase of the pilot project, your firm is willing to invest 3 million dollars in the first year to have the plant built, since your firm believes that at the start of the 2nd year, the plant will bring in $400K annual cash flows (after the tax) for the rest of plant's life. If the pilot phase is not successful, however, your firm expects the annual cash flows after the tax in the 2nd year to go down by 50% ($200K). Your firm decides to go ahead, as it has the option to stop the project anytime and sell it to another form for $300K. The cost of capital to your firm is 10%. What is the NPV of this project? A)-$90,000 B) $290,000 $190.000 D) $90,000 sty A @ w MacBook Pro I 0 > 5 7 + 0 ( 9 R T Y U F . J V B N 5 7 + 0 ( 9 R T Y U F . J V B N