You and two friends of yours are business partners. You've just had a brilliant product idea. It would require a $15,000 immediate expense to cover all set-up costs and generate estimated $2,000 in annual after-tax profits for the next 10 years. The discount rate is 8%. (This means that the NPV of this pilot project is $-1,580.) You and your friends, however, completely disagree on the estimated annual after-tax profit amount. Therefore, you believe that your uncertainty can be captured in the expected volatility of these profits that equals 33%. You all agree that if things go better than expected with these after-tax annual profits, then you will expand your business: in such case, you will add 11 more of such products to your production line which will happen upon completion of the first 10-year long pilot product project. (a) TRUE OR FALSE? If the volatility (see given) was zero, then it would definitely not be worth it to expand the pilot project in 10 years. (b) TRUE OR FALSE? When calculating how much value this possibility to expand the product sales will add to the pilot product's value, one can use the Black-Scholes formula. In this formula, the equivalent of the Strike will equal 11x$15,000. HINT: You will not need to use many numbers that are given in this