Your firm is considering a project with the following after-tax cash flows (in $millions) Cases...
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Your firm is considering a project with the following after-tax cash flows (in $millions) Cases Probability t = 0 t=1 t=2 t = 3 Best 30% -20 15 15 15 Average 50% -20 10 10 10 Worst 20% -20 -5 -5-5 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 11%. 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. Round your final answers to 2-decemial places
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