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Investment Timing Option: Decision-Tree Analysis project would cost $13 million. Moreover, if it waits 2 years, then there is a 90% chance that the net
Investment Timing Option: Decision-Tree Analysis project would cost $13 million. Moreover, if it waits 2 years, then there is a 90% chance that the net cash flows would be $6.3 million a year for 4 years and a chance that they would be $3.3 million a year for 4 years. Assume all cash flows are discounted at 10%. a. If the company chooses to drill today, what is the project's net present value? Do not round intermediate calculations. Enter your answer in millions. For 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 analvsis. does it make sense to wait 2 years before deciding whether to drill
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