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Growth Optiont Option Analysis Fethe's tunny Hats is considering selling tradenarked, orange hairod curly wigs for Unwersty of Tennessee football games. The purchase cost for

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Growth Optiont Option Analysis Fethe's tunny Hats is considering selling tradenarked, orange hairod curly wigs for Unwersty of Tennessee football games. The purchase cost for a 2 - year franchise to sell the wigs is $20,000, If demand is good (40\$ probabilty), then the net cash flows will be $25,000 per year for 2 years, If demand is bad (60\% protability), then the oet cash flows will be $5,000 per vear for 2 years. Fothe's cost of copital is 10%. ia. What it the trpecticd tapy of the profect? Round your answer to the nearest dollar: s. this case, the cash haws that occarred in Yearn 1 and 2 wil be iepeated (so if derrand was pood in Years 1 and 2 , it will continue to be pood in Years 3 and 4 ). Une the Whermed atr calchations, Round vour answers to the nearest dollas. Use compiter wohware packases, wuch as Minitab or Font, to solve this problem. Valie ef the vrowth estienis Valun af the emone proparis

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