Vegetron Exhibit The scientists at Vegetron have come up with an electric mop and the firm is ready to go ahead with pilot production and test marketing. The preliminary phase will take a year and cost $100,000 at time = 0. Management feels that there is only 60% chance that the pilot production and market tests will be successful. If pilot production and test marketing are successful, then Vegetron will build a big plant at a cost of $500.000 at time =1. The plant will start generating after-tax cash flows at time = 2. However, the cash flows will depend on demand conditions. If the demand is high, then it will produce after-tax cash flow of $300,000 per year for 3 years. If the demand is low, it will produce after-tax cash flow of $200,000 per year for 3 years. The probability that the demand will be high is 60% and that it will be low is 40%. If pilot production and test marketing are not successful, then Vegetron will build a small plant at a cost of $200.000 time =1. The plant will start generating after-tax cash flows at time = 2. However, the cash flows will depend on demand conditions. If the demand is high, then it will produce after-tax cash flow of $150,000 per year for 3 years. If the demand is low, it will produce after-tax cash flow of $75,000 per year for 3 years. The probability that the demand will be high is 60% and that it will be low is 40%. The appropriate discount rate is 10 percent for this project. Refer to Vegetron Exhibit. What is the project's expected NPV? Select one: a. $22,558.45 b. $15,743.46 Refer to Vegetron Exhibit. Calculate the risk (standard deviation of NPV) associated with the project. Select one: O a. $103,786.32 b. $102,859.18 O c. $94,334.84 d. $95,039.51 O e. $103,912.78 f. $97,205.45