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Shan co. Is consderng a tour-year project that will require an Intial investment or $9,000. I he base-case cash tiows tor this project are projected

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Shan co. Is consderng a tour-year project that will require an Intial investment or $9,000. I he base-case cash tiows tor this project are projected to be $14,000 per year. The best-case cash flows are projected to be $26,000 per year, and the worst-case cash flows are projected to be $4,500 per year. The company's analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analy als think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows. What would be the expected net present value (NPV) of this project if the project's cost of capital is 13% ? $23,638$30,590$27,809$33,371 Shan now wants to take into account its ability to abandon the project at the end of year 2 if the project ends upenerating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2 , the company will receive a one-time net cash inflow of $3,000 (at the end of year 2). The $3,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project's assets and the company's $4,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project. Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account. $29,210$30,747$36,896$39,971 What is the value of the option to abandon the project

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