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A project must be undertaken now or never in year 0. It costs $100 and generates expected perpetual cash $10 with a 60% probability and

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A project must be undertaken now or never in year 0. It costs $100 and generates expected perpetual cash $10 with a 60% probability and $2 with a 40% probability. In year 1. you can scrap the project for a future value of $75 after you know if the cash flows will be high or low. The cost of capital for the project is 8 percent. What is the net present value of the project, taking into account the real option to abandon? Select one: a. $32.77 b. $0 c. $14.14 d. -$15 e. -$5.06

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