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aussion Question 12 The company Lausanne-Ouchy, Inc. (LO) has productive assets of CHF 20 million (and no other assets whatsoever). The company can use its

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aussion Question 12 The company Lausanne-Ouchy, Inc. (LO) has productive assets of CHF 20 million (and no other assets whatsoever). The company can use its assets to pursue exactly one of three possible projects, A, B, or C. (To avoid ambiguity. After the end of a project, the productive assets have no remaining value. Lors future value (FV) is entirely determined by the chosen project) Project A has a future value (FV) of CHF 100 million with a probability of So% and a FV of CHF 60 million with a probability of 50% Project B has a FV of CHF 150 million with a probability of 40%, a FV of CHF 20 milions with a probability of 50%, and a FV of CHFO with a probability of 10% Project C has a FV of CHF 300 million with a probability of 20% and a FV of CHF 0 million with a probability of 80% Suppose Lol has no debt. What is the best project for the equity owners (shareholders)? Both A and B are best Both A and Care best C only A only B only Reset

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