Question: A privately held company that makes chips that are essential for high-volume data storage is valued at $3 billion. A computer company that wants to

A privately held company that makes chips that are essential for high-volume data storage is valued at $3 billion. A computer company that wants to get into cloud computing is considering purchasing the company, but because of the uncertain economy, it would prefer to purchase an option that will allow it to buy the company for up to 1 year from now at a cost of $3.1 billion. What is the maximum amount the company should be willing to pay for the option, if its MARR is 12% per year?

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