The following picture contains the question and a spreadsheet that the necessary

4 . Now suppast the original Ing abandonment and no additional growth ; project could be delayed a year . All the cash flows would remain unchanged , but information obtained during that year would tell the company exactly which set of demand conditions existed . List decision tree analysis to Estimate the Value of the project if it is delayed by' I year . Hint : Discount the $10 million cast at the risk - free rate since it is known with certainty . Show the time lines, and for operating cash flows and and for the cast , then sum their NEW's. WALL _ Risk - free rate = Decision Tree Analysis : Opte . CF's Future Operating Cash Flows I Viscount at WACCI NEY' this| Probability* Probability Scenario 101 %/} Expected PY' of Future CH's = Decision Tree Analysis : Costs Future Cost of Implementation Lost | Discount at Risk - Free Hate! NPY' this* Probability* Probability\ Scenario 401 %/} LapEcted PY' of Future CF'S = Total NEY' INP Y' Of Future Operating CF plus NPV of Future Year I cast of impleating additional projects - since the NEY' from waiting is positive and the NEY' from immediate implementation is negative , it makes sense to delay the decision for a Year