Abandonment. Henteleff, Inc. is considering a project with the following data: Year       Initial Investment and Net Cash Flow      Abandonment Value in Year t 0             ...

Abandonment. Henteleff, Inc. is considering a project with the following data:

Year       Initial Investment and Net Cash Flow      Abandonment Value in Year t

0              ($8,000)                                                                $8,000

1              4,000                                                                    4,500

2              4,000                                                                    3,000

3              4,000                                                                    0

The firm’s cost of capital is 10 percent. What should the company do?