Albert Co. is considering a four-year project that will require an initial investment of $5,000. The base-case cash flows for this pro be $14,000 per year. The best-case cash flows are projected to be $26,000 per year, and the worst-case cash flows are projected year. The company's analysts have estimated that there is a 50% probability that the project will generate the base-case cash flo think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project gene cash flows. What would be the expected net present value (NPV) of this project if the project's cost of capital is 11% ? $36,732$33,393$40,072$30,054 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 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 $4,00 2). The $4,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling o and the company's $4,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash 4 of the project. Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into a \begin{tabular}{|l|l|} $38,515 & $2,795 \\ $36,681 & $3,617 \\ $47,685 & $2,302 \\ \hline 44,017 & $3,288 \\ \hline$3,452 \\ \hline \end{tabular} What is the value of the option to abandon the project? Albert Co. is considering a four-year project that will require an initial investment of $5,000. The base-case cash flows for this pro be $14,000 per year. The best-case cash flows are projected to be $26,000 per year, and the worst-case cash flows are projected year. The company's analysts have estimated that there is a 50% probability that the project will generate the base-case cash flo think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project gene cash flows. What would be the expected net present value (NPV) of this project if the project's cost of capital is 11% ? $36,732$33,393$40,072$30,054 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 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 $4,00 2). The $4,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling o and the company's $4,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash 4 of the project. Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into a \begin{tabular}{|l|l|} $38,515 & $2,795 \\ $36,681 & $3,617 \\ $47,685 & $2,302 \\ \hline 44,017 & $3,288 \\ \hline$3,452 \\ \hline \end{tabular} What is the value of the option to abandon the project