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Acme Industries is considering building a plant that will have a value after two years. The cash flows from the plant will be $200 million
Acme Industries is considering building a plant that will have a value after two years. The cash flows from the plant will be $200 million following two good years, $150 million following one good and one bad year, and $100 million following two bad years. The initial cost of the plant is $140 million. After one year, however, the firm has options to change the plant
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