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 pro $3,000 per 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 14% ? $14,138$14,845$16,259$13,431 Herman 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 worstive 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 $500 (at 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 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. $18,184$20,664$16,531$19,011 What is the value of the option to abandon the project