ta be bits abe jee Year. TNe best -case cash fows are projected to be 122,000 per year, and the worst-case cash flows art think that there it o 25 sw probatility of the project generating the best-case cash fows and a 25% probability of the project genarasing the worst-case cesih finers. What would be the expected net present value (fap)) of this project if the project's cost of capital is 12\%.? Herman now wants to takin hite acreunt its ability to abandon the project at the end of year 2 if the project ends wp generating the worst-case scenario cash flows. If it decides to atandon the project at the end of year 2, the company will recelve a one-time net cash inflow of 14,750 (at the 526,347 $21,078 528,982 Herman now wants to take into account its abulity to abanden the project at the end of year 2 if the project ends up generating the workt-case scenario cosh flows. If it decides to abandon the project at the end of year 2 , the company will receive a one-time net cash inflow of $4,750 (at the end of year 2). The 94,750 the company recelves at the end of year 2 is the difference between the cash the compary recelves from seling off the project's assets and the company's $1,500 cash outhow from operations. Additionsily, if is abandons the project, the compamy 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. $26,692 $28,097 533,716 525,287 What is the value of the option to abandon the project