The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 Year 1 Year 2 Year 3 $200 (5) $300 (5) $400 (5) $400 (-5) $400 (5) $500 (5) $600 (5) $500 (5) $600 (-5 $700 (5) $700 (5) $700 (5) $900 (5) $800 (5) The firm has the ability to abandon this project at Year 1 and receive $780 at Year 1. Using a risk adjusted discount rate of 8 percent, determine the increase in the net present value for this project when abandonment is considered. $38.99 $42.79 $26.54 $30.88 $35.03