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D Question 25 4 pts Your firm is considering a project which will cost $25 million after-tax today and is expected to generate after-tax cash

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D Question 25 4 pts Your firm is considering a project which will cost $25 million after-tax today and is expected to generate after-tax cash flows of $10 million per year at the end of the next 4 years. If the company waits for 2 years, the project will cost $27 million after tax and there is a 90% chance that the project will generate $12 million per year for four years and a 10% chance that the project will generate $6 million per year for 4 years. Assume all cash flows are discounted at 11%. Estimate the value of the timing option deo O $182 milion $1.45 million $1.29 million $1.88 million $1.67 million

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