Growth Option: Decision$-$Tree Analysis

years. If demand is bad $(60\%$ probability$),$ then the net cash flows will be $$3,000$ per year for $2$ years. Fethe's cost of capital is $13\%.$ Do not round intermediate calculations.

a$.$ What is the expected NPV of the project? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest dollar.

$$350\mathrm{.}85$

Select the correct decision tree.

A

B

c

D

The correct graph is