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Assume that there is a 50% likelihood of another valuable investment opportunity becoming available in two years. If it is available, the investment would require

Assume that there is a 50% likelihood of another valuable investment opportunity becoming available in two years. If it is available, the investment would require an initial investment of $250,000 at time 2. Does this alter your choice? Clearly state your assumptions. Under what assumptions might you choose the otherwise inferior investment today?

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