Question: PLEASE HELP I WILL THUMBS UP! Acme Co. is considering a four-year project that will require an initial investment of $5,000. The base-case cash flows

Acme Co. is considering a four-year project that will require an initial investment of $5,000. The base-case cash flows for this project are projected to be $12,000 per year. The best-case cash flows are projected to be $19,000 per year, and the worst-case cash flows are projected to be $3,000 per year. The company's analysts have estimated that there is a 50% probablity 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 12% ? $20,299$26,643$25,374$24,105 Acme 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 fows. If it decides to abandon the project at the end of year 2 , the company will receive a one-time net cash infiow of $3; 000 (at the end of year 2). The $3,000 the company recelves at the end of year 2 is the difference between the cash the company receives from seiling off the prolect's assets and the company's $3,000 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: $24,822$30,338$31,717$27,580 $24,822$30,338$31,717$27,580
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