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Now suppose that there is an option to abandon the project after 1 year! so the project costs $137,000 to begin today. This begins phase 1 there is learning involved in the first year. Proceed to phase 2 only if phase 1 is promising. There is a 10% chance that phase 1 will be promising. If phase 1 is promising invest $2. 75 million next year and build the plant. It will generate $350,000 per year forever (starting the year after) and is almost risk free. If phase 1 is not promising abandon the project. What is the npv of the project? company wacc

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