Question: 13. Chrustuba Inc is evaluating a new project that would cost 58.6 million art = 0. There is a 30% chance that the project would

 13. Chrustuba Inc is evaluating a new project that would cost

13. Chrustuba Inc is evaluating a new project that would cost 58.6 million art = 0. There is a 30% chance that the project would be highly successful and generate annual after-tax cash flows of $6.4 million during Years 1, 2 and 3. However, there is a 50% chance that it would be less successful and would generate only $1 million for each of the 3 years. If the project is highly successful, it would open the door for another investment of $10 million at the end of Year 2. and this new investment could be sold for $20 million at the end of Year 3. Assuming a WACC of 11.0%, what is the project's expected NPV (in thousands) after taking into account this growth option? Do not round intermediate calculations, a $3.696 b. 52,772 c $4.619 d. $4,250 e $2.956

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