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Business, 05.12.2019 21:31 alexkrol30083

Shan now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst case scenario cash 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 $4,500 (at end of eyar 2). the $4,500 the comapny receives at the end of year 2 is the difference between the cash the company recieves from selling off the project's assets and the comapny's -$1,000 cash outflow from operations. additionally, if it abandons the project, the company will have no cash flwos in years 3 and 4 of the project. using the informaiton in the preceding problem, find the expected npv of this project when taking the abandoment option into account. a. 34,285b. 28,571c. 31,428d. 27,142

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