Question 7 5 pts A potential new project would cost $3000 today. The project would last 2 years. There are 3 possible scenarios for net cash flows in years 1 and 2: 1) $2,350 per year, with 20% probability; 2) $1,800 per year, with 60% probability; 3) $908 per year, with 20% probability. The cost of capital is 7%. The expected NPV of the project is $ Margin of error for correct responses: +/- $.10. Rounding and Formatting instructions: Do not enter dollar signs or commas in your response. Do not round any intermediate work, but round your final* response to 2 decimal places (example: if your answer is $12.34567, you should enter 12.35). If your answer is negative, be sure to enter a negative sign preceding the number. Question 8 5 pts A potential new project would cost $1000 today. The project would last 2 years. There are 2 possible scenarios for net cash flows in years 1 and 2: 1) $934 per year, with 50% probability; or 2) $0 per year, with 50% probability. The cost of capital is 10%. If the firm waits 1 year to make a decision about the project, the uncertainty about the worst-case outcome will be resolved. In other words, by waiting one year to make the decision, the firm will know whether the best case or worst case outcome would occur for the next two years -- and therefore will choose not to proceed with the project if the worst case outcome is anticipated. The expected NPV of the project, considering the option to delay the decision and then to completely abandon the project if the worst case is foreseen, is $ Margin of error for correct responses: +/- $.10