15. Creeks, Inc., is performing real options analysis on a project under consideration. There is a 25%

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15. Creeks, Inc., is performing real options analysis on a project under consideration. There is a 25% chance that the present value of future cash flows will be $0 and a 75% chance that the present value of future cash flows will be $7,500,000. The investment will cost $5,000,000 up front.

Calculate the value of the project.

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