MOINS NS 120 post Iman Timinen DAYS ATS 131 Www SOS 1 514 SS Um 0125 -The ht They + Theo When alt www. www what the two The son that he will be warly child the churwolintu - to decide who will water with wat contact 5520 11 1 1, 310 20 - Who wore the Me 1NPV of Project 25 million 27 Year o 21a NPV of Project 20 30 ab 11 Now: Year o Future Cash Flows Year 2 Probability Year Year 20 NPV of this scenario 0 3 OS S million 3,905 3,005 3,90 $2,000 14 S No Taxes (19,25) Taxes $ 35 milion 2,105 2,10 5 2,10 $2,10 0,5 1 36 Expected value of NPV 12 39 40 Future Cash Flows Year 2 Year 21 NPV of this scenario 61 Now: Year Probability Year s 3,90 0,5 No Taxes $(19,25) $ 3,90 43 44 Wait 0 0 0 Taxes 45 0,5 1 46 Expected value of NPV 47 48 49 Should Kim wait to invest? Why or Why not? 50 MOINS NS 120 post Iman Timinen DAYS ATS 131 Www SOS 1 514 SS Um 0125 -The ht They + Theo When alt www. www what the two The son that he will be warly child the churwolintu - to decide who will water with wat contact 5520 11 1 1, 310 20 - Who wore the Me 1NPV of Project 25 million 27 Year o 21a NPV of Project 20 30 ab 11 Now: Year o Future Cash Flows Year 2 Probability Year Year 20 NPV of this scenario 0 3 OS S million 3,905 3,005 3,90 $2,000 14 S No Taxes (19,25) Taxes $ 35 milion 2,105 2,10 5 2,10 $2,10 0,5 1 36 Expected value of NPV 12 39 40 Future Cash Flows Year 2 Year 21 NPV of this scenario 61 Now: Year Probability Year s 3,90 0,5 No Taxes $(19,25) $ 3,90 43 44 Wait 0 0 0 Taxes 45 0,5 1 46 Expected value of NPV 47 48 49 Should Kim wait to invest? Why or Why not? 50