Question: Decision Tree and Breakeven Sensitivity Analysis Reevaluate the Earthilizer decision
Decision Tree and Breakeven Sensitivity Analysis Reevaluate the Earthilizer decision tree analysis found in Table 3-7,
Where the abandonment value is only $ 350,000. What is the expected NPV of the project under these circumstances? What is the mini-mum abandonment value required to produce an expected NPV for the project of zero with the abandonment option? (Use the Goal Seek function to solve for the abandonment value that produces an expected NPV of zero.)
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