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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

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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 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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