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woo& bong company is considering the introduction of automated stores that can reduce tabout costs, if the automated stored do not operate effectively in the

woo& bong company is considering the introduction of automated stores that can reduce tabout costs, if the automated stored do not operate effectively in the first year. woo & bong company can abadon the project. you have determined the following information relevant to the bandonment possbility

present value of business without option to abandon 553

abandonment-value 500

risk-free interest rate 10%

asset price 553

u=1.23 and d=0.82

what is the project value?

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