Shan Co. is considering a four-year project that will require an initial investment of $7,000. The buse-case cash flows for this project are projected to be $12,000 per year. The best-case cash flows are projected to be $19,000 per year, and the worst-case cash flows are projected to be $3,000 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 analysts also 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 10% ? $25,933$29,638$24,698$23,463 Shan now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abaridon the project at the end of year 2 , the company will receive a one-time net cash intlow of 53,000 (at the end of year 2). The 53,000 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 $3,000 cash outflow from operations. Additionally, if it abandons the project, the company will have no cach flows in years 3 and 4 of the project. Shan now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenaric 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 ye 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 ass and the company's $3,000 cash outflow from operations. Additionally, if it abandons the project; the company will have no cash flows in years 3 an 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. $31,066 $27,014 435,118 $29,715 What is the value of the option to abandon the project