Question
Suppose you will buy a product a year from now for $115 and you are expecting that you may be able to sell either for
Suppose you will buy a product a year from now for $115 and you are expecting that you may be able to sell either for $170 or $65.These outcomes are equally probable. The risk-adjusted discount rate is 17.5%.
- Calculate the NPV for this investment?
- Calculate the NPV for this project considering the value of an option to wait?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
