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You are selecting between two NPV positive projects for the new investment: Project A and Project B. To incorporate flexibility you decide to conduct valuation
You are selecting between two NPV positive projects for the new investment: Project A and Project B. To incorporate flexibility you decide to conduct valuation using Real Option Analysis (ROA). Which of the following parameters is most likely not needed for the Real Option Analysis (ROA) valuation?
Select one:
A. Risk-neutral probabilities
B. WACC
C. None of the other answers
D. Risk-free rate
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