Aggarwal Enterprises Is Considering a New Project That Has a Cost

Aggarwal Enterprises is considering a new project that has a cost of $1,000,000,and the CFO set up the following simple decision tree to show its three most-likely scenarios.The firm could arrange with its work force and suppliers to cease operations at the end of Year 1 should it choose to do so,but to obtain this abandonment option,it would have to make a payment to those parties.How much is the option to abandon worth to the firm?

A) $77.8
B) $90.0
C) $64.8
D) $63.3
E) $76.3