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14. You are considering launching a new product. The initial investment is $14 million. If...

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14. You are considering launching a new product. The initial investment is $14 million. If successful, the product is supposed to generate $4 million in net cash flows forever. If unsuccessful, the product is supposed to generate $-2 million in net cash flows forever. The probability of successful product launch is 70% and the probability of unsuccessful product launch is 30%. The discount rate for this project is 20%. What is an NPV if you have an option to immediately abandon this project if it turns out to be unsuccessful? You will know whether it will be successful immediately after the initial investment is made. $2.60 million b. $1.50 million $ 2.26 million d. $0 $-8.00 million

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