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Option Valuation and NPV You are the CEO of Titan Industries and have just been awarded a large number of employee stock options. The company
Option Valuation and NPV You are the CEO of Titan Industries and have just been
awarded a large number of employee stock options. The company has two mutually exclu
sive projects available. The first project has a large NPV and will reduce the total risk of
the company. The second project has a small NPV and will increase the total risk of the
company. You have decided to accept the first project when you remember your employee
stock options. How might this affect your decision?Option Valuation and NPV You are the CEO of Titan Industries and have just been
awarded a large number of employee stock options. The company has two mutually exclu
sive projects available. The first project has a large NPV and will reduce the total risk of
the company. The second project has a small NPV and will increase the total risk of the
company. You have decided to accept the first project when you remember your employee
stock options. How might this affect your decision?
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