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Hack Wellington Co. wants to take a potential growth option into account when calculating the projects expected NPV. If conditions are good, the firm will

Hack Wellington Co. wants to take a potential growth option into account when calculating the projects expected NPV. If conditions are good, the firm will be able to invest $4,000 in year 2 to generate an additional cash flow of $14,000 in year 3. If conditions are bad, the firm will not make any further investments in the project. Using the information from the preceding problem, determine what the expected NPV of this project will be when taking the growth option into account. $65,656 $75,504 $78,787 $82,070 What is the value of Hack and Wellington Co.s growth option?

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