Return to the Sport Hotel example in the class notes, discussed in class, and in Chapter 9 of the textbook. This quiz question will use the time line and all the figures in this original problem - for example, the costs of building the hotel over three years, the value of the hotel when completed under the two scenarios, and assign as the probability of the city being awarded the franchise the value of 50% Now consider the following three changes to that original problem (all other aspects of the problem do not change). First, the projected expenditures or outflows in the first year is not as originally given at $1 million but instead is $0.955 million. Second, the projected expenditures or outflows in year 2 is not as originally given as $2 million but instead is $2.045. Third, the probability that the city will be awarded the franchise is not 50% as originally given by instead is 41%. Using these three new values, and incorporating the potential real abandonment option, what would the NPV be at the decision node B on the decision tree? million Place your answer in millions of dollars using four decimal places. For example, the answer of nine hundred and seventy five thousand would be entered as 0.975. If applicable, indicate negative amounts with a minus sign in front of the number. Second Best Insurance company is advertising a new product to retirees looking to invest their 401(K) retirement accumulations. The idea is this: give us, Second Best, the lump sum of $680 today and we'll then give you, the retiree, an annuity of $250 to be received at the end of each year, beginning one year from today, for 7 consecutive years. From the standpoint of the retiree, calculate the NPV of this product if the required rate of return is 9% Place your answer in dollars and cents. Indicate any negative amounts (if applicable) with a minus sign in front of the number. Do not include a dollar sign in your answer. Work all calculations using at least 4 decimal places of accuracy. Return to the Sport Hotel example in the class notes, discussed in class, and in Chapter 9 of the textbook. This quiz question will use the time line and all the figures in this original problem - for example, the costs of building the hotel over three years, the value of the hotel when completed under the two scenarios, and assign as the probability of the city being awarded the franchise the value of 50% Now consider the following three changes to that original problem (all other aspects of the problem do not change). First, the projected expenditures or outflows in the first year is not as originally given at $1 million but instead is $0.955 million. Second, the projected expenditures or outflows in year 2 is not as originally given as $2 million but instead is $2.045. Third, the probability that the city will be awarded the franchise is not 50% as originally given by instead is 41%. Using these three new values, and incorporating the potential real abandonment option, what would the NPV be at the decision node B on the decision tree? million Place your answer in millions of dollars using four decimal places. For example, the answer of nine hundred and seventy five thousand would be entered as 0.975. If applicable, indicate negative amounts with a minus sign in front of the number. Second Best Insurance company is advertising a new product to retirees looking to invest their 401(K) retirement accumulations. The idea is this: give us, Second Best, the lump sum of $680 today and we'll then give you, the retiree, an annuity of $250 to be received at the end of each year, beginning one year from today, for 7 consecutive years. From the standpoint of the retiree, calculate the NPV of this product if the required rate of return is 9% Place your answer in dollars and cents. Indicate any negative amounts (if applicable) with a minus sign in front of the number. Do not include a dollar sign in your answer. Work all calculations using at least 4 decimal places of accuracy