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THE FOLLOWING INFORMATION RELATES TO QUESTIONS 19 AND 20 ONLY down the plant at no cost at any time and your cost of capital is
THE FOLLOWING INFORMATION RELATES TO QUESTIONS 19 AND 20 ONLY down the plant at no cost at any time and your cost of capital is 10%. QUESTION 19 Given the embedded option to abandon production the value of your plant will be closest to: A. $8.0 million B. $4.0 million C. $5.0 million D. $6.5 million E. None of the above QUESTION 20 REFER TO THE INFORMATION AT THE TOP OF QUESTION 19. The value of the option to abandon production will be closest to: A. $1.0 million B. $0.5 million C. $1.0 million D. $3.0 million E. None of the above
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