Thank you so much in advance.

will give thumbs up.

You can invest in a prohect either now or next year. If it is successful, you get an expected cash flow of $75 million the following year (the year after investing), if it is unsuccessful, you get an expected cash flow of $9 million the following year (the year after investing). The project costs $20 million at the time of the initial investment, and has a discount rate of 10%. The chance of success is 50%. Answer the following questions:

1. What is the NPV pf the project of you invest today? $ __ million (round to two decimals)

2. If you wait a year, you will know wheather the project will be successful (the chance of success is still 50%). What is the NPV today of the project if you decide to wait a year before making your decision? $ __ million (round to two decimals)

3. What is the value of the option to wait? $ __ million (round to two decimals)

4. How much would you be willing to pay to acquire this option to wait?

You should be willing to pay up to $__ million to acquire this option. (round to 2 decimals)

thank you!!!

(This question has multiple parts) You can invest in a project ether now or not year is successful you get an expected cash flow of 575 million following year (the year after investing that is unaccessful you got an expected cash flow of 59 milion the following year the year after investinglThe project co 520 million at the time of the initiat investment and has a discount rate of 10%. The chance of success is 50% Antwer the foliowing question What is the NPV of the project you invest today? million found to two decimals 2. Wyou wat a youyou will know whether the project will be succeeded (the chance of success is sox) What is the NPV today of se project l you decide to wait a year bufor making you decision? Sion round to two docima What is the value of the option to man (round to two decimals) 4. How much would you be willing to pay to acquire this option to wait? You should be willing to pay up to 5 milion to acquire this option fround to two decimals)