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1. You are the manager of a firm. You are given a task to decide which of three options to take to maximize the value
1. You are the manager of a firm. You are given a task to decide which of three options to take to maximize the value of the firm over the next three years. The expected year-end profits are given in the following table and the company expects that the interest rates are stable at 7 percent over the next three years. a. Discuss the difference in the profits associated with each option. Provide an example of real-world options that might generate such profit streams. | Option Year 1 Year 2 Year 3 A RM70,000 RM80,000 RM90,000 B RM50,000 RM90,000 RM100,000 RM30,000 RM100,000 RM115,000
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