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Intro A company can expand an ongoing project in 2 years by investing $45 million and will then earn an expected $36 million (in present

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Intro A company can expand an ongoing project in 2 years by investing $45 million and will then earn an expected $36 million (in present value terms). The annual standard deviation of the follow-on project's returns is 50%. The risk-free rate is 4% (continuously compounded). Attempt 1/3 for 10 pts. Part 1 What is the value of the option to expand (in $ million)

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