Expansion Option. Now suppose that Hit or Miss Sports from the previous problem can expand production if

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Expansion Option. Now suppose that Hit or Miss Sports from the previous problem can expand production if the project is successful. By paying its workers overtime, it can increase production by 20,000 units; the variable cost of each ball will be higher, however, equal to

$35 per unit. By how much does this option to expand production increase the NPV of the project?

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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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