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Suppose that everything stays the same as was presented in the original problem, except one thing -- the value of the hotel, should the city
Suppose that everything stays the same as was presented in the original problem, except one thing -- the value of the hotel, should the city be awarded the franchise, is not $8 million but instead is $5.40 million. Using this new value of the hotel, what is the NPV of the project assuming that the probability of the city being awarded the franchise is 60%?
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