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What is the NPV of this project? If the new pizza menu is a success, UNO can develop a new lasagna as a side menu,
What is the NPV of this project? If the new pizza menu is a success, UNO can develop a new lasagna as a side menu, This lasagna is expected to generate a CF of $50 mil in year 2. What is the NPV of project with this real option? We learned in class that the "option to expand" is an implicit call option What is the rationale for this argument? In other words, how are these two concepts ("option to expand" and "call option") related to each other? Explain in 1 2 sentences
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