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i need the answer quickly Question 2: You want to invest in a project that costs initially $60 million. It has 50% chance to generate
i need the answer quickly
Question 2: You want to invest in a project that costs initially $60 million. It has 50% chance to generate $5 million per year (pessimistic scenario) and 50% chance to generate $15 million per year (optimistic scenario). a. What is the NPV of this investment if you have set a 20% required rate under each of the two scenarios? Explain the outcome of your calculations. b. If you have the option to expand into 4 locations if the project is successful, what would be the NPV of this investment opportunity? c. What is your conclusion on this investment opportunity taking into account the option to expand and point b. aboveStep by Step Solution
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