The change to consider is this: suppose that the value of the hotel is one of two values: $8.6 million if the city is successful in obtaining the franchise (and not $8 million as in the original problem) or $3.7 if the city is not successful in obtaining the franchise (and not $2 million as in the original problem). All other aspects of the problem are the same as originally presented, such as the costs per year. Assume that the probability of obtaining the franchise is 50%. Incorporating these new hotel values from above, and the real cption, what is the new NPV of the project? million Return to the Sport Hotel example in the course notes, the lesson and in Chapter 9. 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 $5.75 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 50%? $ million The change to consider is this: suppose that the value of the hotel is one of two values: $8.6 million if the city is successful in obtaining the franchise (and not $8 million as in the original problem) or $3.7 if the city is not successful in obtaining the franchise (and not $2 million as in the original problem). All other aspects of the problem are the same as originally presented, such as the costs per year. Assume that the probability of obtaining the franchise is 50%. Incorporating these new hotel values from above, and the real cption, what is the new NPV of the project? million Return to the Sport Hotel example in the course notes, the lesson and in Chapter 9. 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 $5.75 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 50%? $ million