# Finance Assignment | Professional Writing

Shan Co. is considering a four-year project that will require an initial investment of \$7,000. The base-case cash flows for this project are projected to be \$12,000 per year. The best-case cash flows are projected to be \$20,000 per year, and the worst-case cash flows are projected to be -\$1,000 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows. What would be the expected net present value (NPV) of this project if the project’s cost of capital is 13%? \$19,981 \$26,225 \$23,727 \$24,976

Don't use plagiarized sources. Get Your Assignment on
Finance Assignment | Professional Writing
Just from \$13/Page

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 \$4,750 (at the end of year 2). The \$4,750 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s -\$1,000 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project. Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account. \$33,035 \$26,428 \$34,356 \$23,785 What is the value of the option to abandon the project?

Get Finance homework help today

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Nursing
Thanks so much, excellent work as always.
Customer 453939, May 23rd, 2020
Healthcare & Medical
Good work!
Customer 463469, October 17th, 2022
Nursing
Thank you so much for the great paper!
Customer 454007, May 31st, 2020
Psychology
GOOD REVISION.
Customer 462815, April 20th, 2022
Nursing
I am pleased with my paper. The support team helping me to receive this finally was phenomenal. Thank you
Customer 453993, February 10th, 2020
Customer 462795, April 3rd, 2022
Always format your paper as instructed.
Customer 458115, April 7th, 2022
Social Work and Human Services
Great writer! Thanks for the revision, the paper is so much better than ones previous.
Customer 463301, November 8th, 2022
Accounting
Thank you for the revision! This is how it should look like.
Customer 463407, October 16th, 2022
Retail
Good
Customer 463469, October 18th, 2022
Health Care
Thank you!
Customer 454001, March 11th, 2020
Always heed to the customer's perspective and aim at error-free content.
Customer 452441, March 28th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend