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Given the following decision tree of possible outcomes, answer the questions below, You can sell your company for 5150 million at. the end of the

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Given the following decision tree of possible outcomes, answer the questions below, You can sell your company for 5150 million at. the end of the next (first) year - immnediately before the first cash flow would be received but after you discover what that furst cash flow will be. The numbers in brackets refer to the probability for each payoff to realize. Apply a discount rate of 1008. All payoffs are in millions of dollars fe.g. +5100 means $100 million) a) What is the value of the firm without the option of selling the firm in the first year? (5 marks) b) What is the value of the firm with the option of selling the firm in the first year? (4 marks) c) What is the value of the option to sell? (1 marks)

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