Question
GHI Corporation is evaluating a project with an initial investment of $1,000,000. There is a possibility of expanding the project in the future, which would
GHI Corporation is evaluating a project with an initial investment of $1,000,000. There is a possibility of expanding the project in the future, which would require an additional investment of $500,000. The expansion would generate additional cash flows of $200,000 per year for 5 years. Evaluate the project using real options analysis.
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Antony Head
9th Edition
1292450940, 978-1292450940
