Question: net cash flows will be $25,000 per year for 2 years. If demand is bad ( 60% probability), then the net cash flows will be

net cash flows will be $25,000 per year for 2 years.

net cash flows will be $25,000 per year for 2 years. If demand is bad ( 60% probability), then the net cash flows will be $5,000 per year for 2 years. Fethe's cost of capital is 10%. a. What is the expected NPV of the project? Round your answer to the nearest dollar. $ that the risk-free rate is 6%. Do not round intermediate calculations. Round your answers to the nearest dollar. Use computer software packages, such as Minitab or Excel, to solve this problem. Value of the growth option: \$ Value of the entire project: $

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