When a project is a success, the NPV of the project is $600,000. When the project is a failure, the project can continue until completion and generates a $200,000 NPV. The project can be abandoned at year 1, which generates a -$300,000 NPV. If probability of success and failure are 40% and 60%, respectively, what is the value of the abandonment option? $0 $40,000 -$100,000 -$60,000 $100,000
