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A company considers whether it should increase its production capacity based on a 50% probability that export restrictions will be lifted and demand will increase.
A company considers whether it should increase its production capacity based on a 50% probability that export restrictions will be lifted and demand will increase. Managers gather the following data (in SEK millions): Current production facility NPV 30 Cost of license to expand production facility 10 Value of option to expand 20 The value of the production facility with the option (in SEK millions) is closest to: A 20 B 30 C 40
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