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13. Let the present value from production be equal to V = 100, and this value can move either up or down in the next
13. Let the present value from production be equal to V = 100, and this value can move either up or down in the next period (t=1) to V=130 and V=77. Suppose that at t=1 management has the option to invest 80 million in order to double the value of production. The risk free rate is 2%. You only have to consider the given periods. What is the value of this option? (Hint: consider the option to expand). Please round your answer to two decimal places and use a period to indicate the decimal place (e.g. 10.75 instead of 10,75). Enter answer here
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