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Singh Development Co, is deciding whether to proceed with Project X. The after-tax cost would be $11 million in Year 0 . There is a

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Singh Development Co, is deciding whether to proceed with Project X. The after-tax cost would be $11 million in Year 0 . There is a s0\% chance that X would be hugely successful and would generate annual after-tax cash flows of $6 million per year during Years 1,2 , and 3 . However, there is a so\% chance that X would be less successful and would generote after-tax cash flows of only $1 milion per year for the 3 years. If Project X is hugely successful, it would open the door to another investment, Project Y, which would require an after-tax outlay of $11 million at the end of Year 2. Project Y would then be sold to another company netting $22 million after taxes at the end of Year 3 . Singh's Wacc is 11%. a. If the company does not consider reat options, what is Project X's expected NPVZ Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations, Round your answer to three decimal places. $ million b. What is X's expected NPV with the growth option ? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55 . Negative value, if any. should be indicated by a minus sign. Do not round intermediste calculations. Round your answor to three decimal places. s million c. What is the value of the growth option? Enter your answers in milions. For example, an answer of \$10, 550,000 should be entered as 10.55. Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to three decimat places. 5 million

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