The following answers are incorrect: NPV= 2823355.72; 1542658.28; 2236677.86; 520,328.57; and 271263.30 Option value: 46670.31 and 5668 We are next 10 years. In other words, the annual operating cash flow is projected to be $61 6,700 $408,700 The relevant discount rate is 15 percent, and the initial investment required is $1,780,000 After the first year, the project can be dismantled and sold for $1,650,000. Suppose you think it is likely that expected sales will be revised upward to 9,700 units if the first year is a success and revised downward to 5,300 units if the first year is not a success. Suppose the scale of the project that twice as many units can be produced and sold. Naturally, expansion would be desirable only if the project were a success. This implies that if the project is a success, projected sales after expansion will be 19,400. Note that abandonment is an option if the project is a failure. examining a new project. We expect to sell 6,700 units per year at $61 net cash flow apiece for the can be doubled in one year in the sense If success and failure are equally likely, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV What is the value of the option to expand? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Option value