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HW Decision Trees and Real Option Analysis Decision Tree Analysis 1. You investigate a problem and create the following decision tree. The discount rate is

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HW Decision Trees and Real Option Analysis Decision Tree Analysis 1. You investigate a problem and create the following decision tree. The discount rate is 10% per year. What is the NPV of the project? | yr = 0 yr = 1 yr = 2 06 500 100 0.55 0.4 250 -175 0.6 450 0.45 20 0.4 2 225

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