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Option Pricing Model Valuing the option to delay: Patents . Consider a patent which if utilized is expected to produce $3.5bn of present value and
Option Pricing Model
Valuing the option to delay: Patents . Consider a patent which if utilized is expected to produce $3.5bn of present value and is expected to cost $3bn. The patent's life is 20 years and standard deviation of the expected cash flows is 30%. Risk-free rate is 4.5% Should we go ahead? Finance & Accounting Group VEMStep by Step Solution
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