Your form is considering a project with the following after-tax cash flows (in Smillions) Cases Probability to t-2 t-3 30% Best -20 16 16 16 50% Average -20 10 10 10 Worst 20% -20 -6 -6 -6 Beo Your firm has an option to abandon the project after 1 year of operation, in which case it can sell the asset and receive $10 millions after taxes in cash at the end of Year 2. The WACC is 10%. The project's expected NPV without the abandonment option - $ million. The project's expected NPV with the abandonment option - $ million. The value of the abandonment option$ million.
