A company is investing in a project. The project requires an outlay of Rs 100 crore, and
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A company is investing in a project. The project requires an outlay of Rs 100 crore, and the present value of cash flows is Rs 120 crore. This project is expected to lead to a second-generation project in 5 years that requires an investment of another Rs 200 crore. The second generation would generate cash flows with a present value of Rs 170 crore, if developed right now. The standard deviation of cash flows is 0.8. Assuming a risk free rate of 6 percent, estimate the value of option.
Would you undertake the project?
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Gabriela Rosalía Castro
I have worked with very different types of students, from little kids to bussines men and women. I have thaught at universities, schools, but mostly in private sessions for specialized purpuses. Sometimes I tutored kids that needed help with their classes at school, some others were high school or college students that needed to prepare for an exam to study abroud. Currently I'm teaching bussiness English for people in bussiness positions that want to improve their skills, and preparing and ex-student to pass a standarized test to study in the UK.
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