Question 9 5 pts A potential new project would cost $1000 today. The 1st stage of the project would last 2 years. There are 2 possible scenarios for Stage 1 net cash flows in years 1 and 2: 1) $757 per year, with 50% probability; or 2) $0 per year, with 50% probability. If the 1st stage outcome is good (with non- zero outcomes), the firm will reinvest an equal amount in year 2 (the same amount invested at year 0) and extend the project into Stage 2 (years 3 and 4). The possible Stage 2 outcomes are either: 1) net cash flows in years 3 and 4 doubling relative to the good Stage 1 outcome (with probability of 50%), or 2) net cash flows of O in years 3 and 4 (with probability of 50%). If the Stage 1 outcome is bad, the firm will abandon the project at the conclusion of Stage 1. The cost of capital is 9%. The overall expected NPV of the project (at year 0), considering Stage 1 and the option to either abandon the project after Stage 1 or expand the project into Stage 2, is Margin of error for correct responses: +/- $.10. Rounding and Formatting instructions: Do not enter dollar signs or commas in your response. Do not round any intermediate work, but round your final* response to 2 decimal places (example: if your answer is $12.34567, you should enter 12.35). If your answer is negative, be sure to enter a negative sign preceding the number. Question 10 5 pts