solve in word format

Antropov Enterprises has an opportunity to enter a new market This new market would last 2 years, but could be abandoned after year 1. Also, there is an option to expand the project in year 2. Entering the new market would require $3,000,000 initial investment With a 60% probability the move will be a failure and will generate net revenues of $500,000 in year 1, and -$750,000 (a loss) in year 2, unless the company decides to abandon the project at the end of year 1, which would result in contract penalty fees of $700,000 at the end of year 1 and no cash flows in year 2. With a 40% probability the move will be successful and generate net revenues of $4,000,000 in year 1. Without expanding the project, the net revenues in year 2 will be $4,000,000. Alternatively, if a decision is made and the project is expanded at the end of year 1, at a cost of $2,500,000, the net revenues in year 2 will instead be $6,750,000 Antropov uses 12% cost of capital for this type of project. Using the decision tree technique, compute the expected PW of the entire project, determine whether it should be accepted, and explain why