1. Suppose, if the best case scenario starts to unfold, that you will allow the project to run through Year 10 (instead of stopping after Year 7) with all of the growth continuing through Year 10. If this happens, youll have the opportunity to sell off the investment for $5m in 10 years.
   1. What is the best case scenario NPV now?
   2. Does the option to expand change your answer to whether you should pursue the project (given the probabilities in #7)? Explain/show.

What is the value of the option to expand? (in dollars) Explain/show