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Assume a company runs a plant for which the value one year from novtr will be either $15000 if market growth is positive or $25G

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Assume a company runs a plant for which the value one year from novtr will be either $15000 if market growth is positive or $25G if market growth is negative. The probability of positive market growth is 60%, and the probability of negative market growth is 40%. At anytime, the company can choose to close the plant and collect the salvage Tvalue of $285 if scrapped today or $300 if scrapped in one year. The cost of capital for the plant is 1U%, and the risk-ee rate is 5%. Estimate the value of the plant using the standard NPV, decision tree analysis (ETA), and real option valuation [ROV) valuation models. Explain the differences in results

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