Question
Resolve the last problem assuming Work Station Inc. has an abandonment option at the end of the first year under which it will recover $5
Resolve the last problem assuming Work Station Inc. has an abandonment option at the end of the first year under which it will recover $5 million of the initial investment in year 2. What is the value of the ability to abandon the project? How does your overall recommendation change?
Please do in excel with calculation. Chapter 12 Problems question number 8 & 9
Text Book :
http://197.14.51.10:81/pmb/GESTION2/FINANCE/0324422636.pdf
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
