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Investment Timing Option: Decision-Tree Analysis be $2.1 million a year for 4 years and a 10% chance that they would be $1.1 million a year
Investment Timing Option: Decision-Tree Analysis be $2.1 million a year for 4 years and a 10% chance that they would be $1.1 million a year for 4 years. Assume all cash flows are 12%. example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ million b. Usina decision-tree analysis, does it make sense to wait 2 years before deciding whether to drill? -SelectYes, it makes sense to wait two years to drill. No, it makes sense to drill today. Investment Timing Option: Decision-Tree Analysis be $2.1 million a year for 4 years and a 10% chance that they would be $1.1 million a year for 4 years. Assume all cash flows are 12%. example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ million b. Usina decision-tree analysis, does it make sense to wait 2 years before deciding whether to drill? -SelectYes, it makes sense to wait two years to drill. No, it makes sense to drill today
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