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Your company is considering a proposed project and has determined that if it invests in the project today, the project's estimated NPV will be $12

Your company is considering a proposed project and has determined that if it invests in the project today, the project's estimated NPV will be $12 million. Unfortunately, there remains a lot of uncertainty about the project's true profitability. As an alternative to making the investment today, the company is considering waiting a year. In particular, it is considering spending some money today to collect additional information, which would enable the firm to make a better assessment of the project's value one year from now (that is, the firm would be able to determine whether the project would or would not be profitable). Your company believes that if it waits a year, there is a 50 percent chance the information collected will be positive and the project's expected NPV one year from now (not including the cost of obtaining the information) will be $30 million. There is also a 50 percent chance the information collected will be negative and the project's expected NPV one year from now (not including the cost

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