USING AI WILL GET DOWNVOTED, PLEASE SOLVE CORRECT. Consider the problem of investing in a risky project. A

project costs $$500.$ The annual cash flow for the first year

are $$60$ and grows at the rate of $3\%$ annually. The risk free

rate is $5\%.$ The company WACC is $12\%.$

Suppose the project has an option to let you wait and

decide whether to accept the project. You can invest now or

next year or in two years. At the end of $2$ years you either

invest in the project or lose it since further deferral is not

possible. The project analyst has done the calculations and

has produced the binomial tree showing the cash flows

from the project at future dates. Calculate the NPV of the

project.