It is the beginning of September and you have been offered the following deal to go heli-skiing. If you pick the first week in January and pay for your vacation now, you can get a week of heli-skiing for $3,000. However, if you cannot ski because the helicopters cannot fly due to bad weather, there is no snow, or you get sick, you do not get a refund. There is a 30% probability that you will not be able to ski. If you wait until the last minute and go only if you know that the conditions are perfect and you are well, the vacation will cost you $5,200. You estimate that the pleasure you get from heli-skiing is worth $6,900 per week to you (if you had to pay more than that, you would choose not to go). If your cost of capital is 3% per year, should you book ahead or wait? .... You should because the NPV of this choice is $7. (Round to two decimal places.) wait book ahead Help me solve this View an example Get more help Clear all Check answer Suppose the current value of a dealership is $5.00 million and the first-year free cash flow is expected to be $500,000. What is the beta of a corporation whose only asset is a one-year option to open a dealership? What is the beta if the first year's cash flows are expected to be $700,000, so a working dealership is worth $7.00 million? Assume that the beta of the dealership is 2.0 and that the appropriate cost of capital for this investment is 12.0%. Also consider that the volatility an the risk-free rate are 40% and 5.0%, respectively. RENE What is the beta of a corporation whose only asset is a one-year option to open a dealership? The current value of the asset without the dividends is $ million. (Round to four decimal places.) View an example Etext pages Get more help Clear all Check answe