13. Dodger Company is performing real options analysis on a project under consideration. There is a 20%

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13. Dodger Company is performing real options analysis on a project under consideration. There is a 20% chance that the present value of future cash flows will be $3,700,000 and an 80%

chance that the present value of future cash flows will be $12,000,000. The investment will cost

$8,000,000 up front.

Calculate the value of the project.

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