As a financial manager of ABC Co, you have an opportunity to invest a new project. The initial investment of the project is about 105 million HKD. According to experience, you estimate, given the current circumstances, the present value(hereafter PV) of the project is 100 million HKD. However,economic

Payt two: Calculation and analysis As a financial manager of ABC Co, you have an opportunity to invest a new project. The initial investment of the project is about 105 million HKD. According to experience, you estimate, given yhe current circumstances, the present value(hereafter PV) of the project is 100 million HKD. However, cconomic position always change in the future, the PV of the project may be either 1.3 times of current PV or 0.77 times of current PV in the next year, and then the value will keep unchanged. Fortunately, you have a chance to sell your project to another firm at the price 90 thillion HKD at any time. You know the risk-free rate is 5% should you accept this project? Why