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which one is correct answer why An American oil company wants to do a project in Venezuela. The project costs $150 million. The project predicts

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An American oil company wants to do a project in Venezuela. The project costs $150 million. The project predicts to yield $100 million per year for 2 years. However, due to political risk, there is a 10% probability each year that the government will expropriate the project, which means that the cash flows will be zero from then onward. Assume a 8% discount rate. Then the net present value of the project is Select one: a. -$14.33 million b. -$2.78 million c. $2.78 million d. $1.51 million

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