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7 . The owner of a pro - football team expects the team to be worth either $ 2 7 0 million next year or

7.The owner of a pro-football team expects the team to be worth either $270 million next year or $120 million, depending on whether or not she gets the city to build a new stadium. There is a 60% chance she will get a new stadium. There is a buyer willing to pay $175 million for the team right now. However, the buyer will keep his offer openuntil the stadium issue is resolvedif offered some form of compensation. Given a discount rate of 7%, how much should she be willing to pay the potential buyer for a one-year option to sell the team (round to the nearest $1 million)? A.0B. $21 millionC. $42 millionD. $55 million

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