8.14 Consider the acquisition of AdvPak Technologies examined in Section 8.9. Let revenue volatility be 20% and

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8.14 Consider the acquisition of AdvPak Technologies examined in Section 8.9. Let revenue volatility be 20% and assume that you are willing to bid $205 million for the enterprise but that you expect to be able to sell it for $160 million if revenue turns out to be disappointing.

What is the value of AdvPak now, and what is the exit revenue threshold?

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