Please answer both and show work/provide excel calculations.

Tricia McMillan, the owner of a pizza parlor near a large university campus, is considering opening a shop specislizing in quick. inexpensive take-out meals that are low in fat and calories. She will use a vacant space adjacent to the pizza parlor. The project would require an initial cash outlay of $1600 thousand. Finance students from the university have taken on the project as a course assignment. The students believe that there is a 45% chance that the project will have modest success and return $90 thousand per year in perpetuity. On the other hand, the remaining probability is that the project will be successful and produce returns of 5210 thousand per year in perpetuity. If the new restaurant is only modestly successful, Tricia will keep it open but not expand. If it is successful, she will open 4 more shops at sites close to the sprawling campus the following year. The additional shops would have the same costs and expected future cash flows as the first one. What is the expected NPV of the project (in $ thousands, rounded to one decimal place, e.8. 12.3) including the option to expand, given a discount rate of 10% ? Question 10 Zaphod Industries is considering launching a new long-term joint venture with a foreign company. Its investment in the new venture is expected to be $430 million and it has calculated the NPV of this project to be 516 million. The company expects to earn (1.e., pull out dividend payments) from this investment of 3% per year. The firm is negotiating an option in which it could sell its share of the investment to its partner for $400 million at any time over the next 7 years. If the risk.free rate is 2%,N(d1) is 0.81 , and N(d2) is 0.49 , what is the maximum amount that Zaphod should pay (in 5 millions rounded to one decimal place. e.g., 12.3) to its partner to have the right to sell its share to them anytime over the next 7 years? Use the simplified Black-Scholes model P=PV(X)(1N(d2)) PV(P)(1N(d1)), in which the present values of the exercise price (P) and the investment cost (X) are found by using annual discounting, (i.e, discounting by (1+anoualreturnoninvestment))t for the exercise value and by (1+risk-freerate)t for the cost or present value of the investment, rather than discounting continuously by el)