Question

In the previous problem, suppose you think it is likely that expected sales will be revised upwards to 17,000 units if the first year is a success and revised downward to 3,400 units if the first year is not a success.
a. If success and failure are equally likely, what is the NPV of the project? Consider the possibility of abandonment in answering.
b. What is the value of the option to abandon?


$1.99
Sales0
Views45
Comments0
  • CreatedOctober 01, 2015
  • Files Included
Post your question
5000