We are examining a new project. We expect to sell 6,900 units per year at $63 net cash flow apiece for the next 10 years. In other words, the annual cash flow is projected to be $63 X 6,900 = $434,700. The relevant discount rate is 16 percent, and the initial investment required is $1,800,000. After the first year, the project can be dismantled and sold for $1,670,000. Suppose you think it is likely that expected sales will be revised upward to 9,900 units if the first year is a success and revised downward to 5,500 units if the first year is not a success. a. If success and failure are equally likely, what is the NPV of the project? Consider the possibility of abandonment in answering. (Do not round intermediate calculations and round your answer to 2 decimal places. e.g., 32.16.) NPV b. What is the value of the option to abandon? (Do not round intermediate calculations and round your answer to 2 decimal places. e.g., 32.16.) Option value The price of Build A Fire Corp. stock will be either $94 or $123 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 2 percent. a. Suppose the current price of the company's stock is $105. What is the value of the call option if the exercise price is $90 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of the call option | b. Suppose the exercise price is $120 and the current price of the company's stock is $105. What is the value of the call option now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of the call option