At Stage 2 of the Decision Tree It Shows That

Multiple Choice

At stage 2 of the decision tree it shows that if a project is successful,the payoff will be $53,000 with a 2/3 chance of occurrence. There is also the 1/3 chance of a $-24,000 payoff. The cost of getting to stage 2 (1 year out) is $44,000. The cost of capital is 15%. What is the NPV of the project at stage 1?

A) $-13,275
B) $-20,232
C) $2,087
D) $7,536
E) Cannot be calculated without the exact timing of future cash flows