Question 4 Suppose a rm has $100 million to invest in a new market. Given market uncertainty, the rm forecasts a high-scenario where the present value of the investment is $250 million, and a low-scenario where the present value of the investment is $50 million. Assume the rm believes each scenario is equally likely. Suppose that by waiting, the rm can learn with certainty which scenario will arise. If the rm waits one year and learns that high scenario will happen, its expected net present value of investment is $69.2 million. Using the above information, calculate: (a) the annual discount rate (b) the difference in the expected net present value of investment between waiting a year and then invest and investing today