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You are considering a project that offers up the following possible payout with an opportunity cost of 2 0 % . Time 0 1 2
You are considering a project that offers up the following possible payout with an opportunity cost of
Time
Base Case $
At the end of year two you know there is a possiblity you will buy out your competitor which has the potential to create opportunities that are worth $ at that time.
How much potential value is created or lost by taking on this project ie what is the NPV
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