2. Expansion options (S23.1) Look again at Table 23.2. How does the value in 1982 of the...

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2. Expansion options (S23.1) Look again at Table 23.2. How does the value in 1982 of the option to invest in the Mark II change if

a. The investment required for the Mark II is $800 million (vs. $900 million)?

b. The present value of the Mark II in 1982 is $500 million (vs. $467 million)?

c. The standard deviation of the Mark II’s present value is only 20% (vs. 35%)?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:04 AM

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2. Expansion options (S23.1) Look again at Table 23.2. How does the value in 1982 of the...

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Principles Of Corporate Finance

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