Markung's Co$.$ is considering a three$-$year project that will require an initial investment of $$55,000.$ It has estimated that the annual

cash flows for the project under good conditions will be $$70,000$ and $$10,000$ under bad conditions. The firm believes that there is a

$60\%$ chance of good conditions and a $40\%$ chance of bad conditions.

If the firm is using a weighted average cost of capital of $13\%,$ the expected net present value $($NPV$)$ of the project is

$($Note: Do not

round intermediate calculations and round your answer to the nearest dollar.$)$

Markung's Co$.$ wants to take a potential growth option into account when calculating the project's expected NPV$.$ If conditions are good, the firm will

be able to invest $$2,000$ in year $2$ to generate an additional cash flow of $$15,000$ in year $3.$ If conditions are bad, the firm will not make any further

investments in the project.

Using the information from the preceding problem, the expected NPV of this project$-$when taking the growth option into account$-$is

$($Note: Do not round intermediate calculations and round your answer to the nearest dollar.$)$

Markung's Co$.\text{'}$s growth option is worth

$.($Note: Do not round intermediate calculations and round your answer to the nearest dollar.$)$