There is a two period world $($with dates zero, one, and two$)$ with two assets as described

below.

You have an investment opportunity that can be undertaken today $($date zero$),$ at date

one, or date two. Undertaking the investment opportunity costs $5$ today, $4\mathrm{.}8$ on date

one, $4\mathrm{.}6$ on date two. The PV of future cash flows after the investment cost is paid

$($so on the date you undertake the investment$)$ depend on the timing of the investment

and are given below. For example, if I would undertake the investment opportunity on

date one in the up state then the PV $($at date one$)$ of future cash flows after investment

would be $7.$ Additionally, on date one I would also need to pay the investment cost

of $4\mathrm{.}8.$ This implies that at date one in the up state the NPV from undertaking the

project would be $7-4\mathrm{.}8=2\mathrm{.}2.$ What is the PV of this real option and what is the

optimal exercise strategy? please consider that r is not given $/$ i assume zou have to it with excel