Questions 6-15: Investment decisions Probability of success. Your company has made bids on two projects. The company could be successful on winning project A or project B, but it cannot win both projects. There is also the chance of winning zero projects. A fair discount rate given the risks of these investments is 10% per year. There is a 45% chance your company wins only project A. Project A requires an initial investment of $5.5 million and is projected to generate cash flow of $3.0 million in year 1. Cash flows are projected to grow a 3% per year, with the last cash flow to be received in year 15. There is a 30% chance your company wins only project B. Project B requires an initial investment of $8.5 million and is projected to generate cash flow of $2.6 million in year 1. Cash flows are projected to grow at 5% and continue indefinitely. There is a 25% chance your company does not win the bid on either project A or project B. Suppose that these two projects represent all of your company's opportunities. What is the total value of your company (also called enterprise value)? a. $14 million to $16 million b. $16 million to $18 million C. $18 million to $20 million d. $20 million to $22 million e. $22 million to $24 million f. $24 million to $26 million g. $26 million to $28 million h. $28 million to $30 million i. $30 million to $32 million j. $32 million to $34 million