A (6 points) Your friend wants to start a deep sea fishing company in Galveston. It will cost them 5300.000 to buy a boat and supplies. There is a 50% chance they are successful and they will get free cash flows of 544,000 per year starting at t-1). There is a so chance they are unsuccessful and they only get $16,500 per year starting at t 1). Assume these cash flows are a perpetuity. The discount rate is 11 What is the NPV of this deep sea fishing company when they are successful What is the expected NPV of this deep sea fishing company! 15 points) Your friend anks you to analyze their business plan. When you look at their plan, you realize that they have a real option the option to expand. If your friend is successful with one bout, they can scale up their operations to boats total (with the same costs and yearly cash flows What is the value of this projec with the option to expand? Copolnits) When you identified the real option you added lots of value to your friend's business idea and really changed the project's outlook How much value is this real option worth? t you did not calitate part of Parts, you can assume the NPV of Part.16.000 and the Niv of Part **00001