Albert Co. is considering a four-year project that will require an initial investment of dollar15,000. The base-case cash flows for this project are projected to be dollar15,000 per year. The best-case cash flows are projected to be dollar22,000 per year, and the worst-case cash flows are projected to be -dollar1,500 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 11%? dollar25,377 dollar29,003 dollar20,544 dollar24,169 Albert 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 abandon the project at the end of year 2, the company will receive a one-time net cash inflow of dollar3,500 (at the end of year 2). The dollar3,500 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 -dollar1,500 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. dollar25,704 dollar23,134 dollar24,419 dollar30,845 What is the value of the option to abandon the project? dollar1,382 dollar1,535 dollar1,075 dollar1,612 dollar1,305