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A project if undertaken this year, year 0, costs $100 and generates expected perpetual cash flows or $15 from year 1 to perpetuity with a

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A project if undertaken this year, year 0, costs $100 and generates expected perpetual cash flows or $15 from year 1 to perpetuity with a 90 percent chance and $2 with a 10 percent chance. If you wait a year, you will know if the cash flows are $15 or $2, the project will cost $105, and you can decide if you want to invest. The cost of capital of the project is 10 percent. What is the net present value of the project, taking into account the real option to wait? Select one: O a. $0 b. $50.00 c. $37.00 Dod. $36.82 e. $40.91

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