Look again at the malted herring example in Section 22.3. Suppose that by postponing the project for
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Look again at the malted herring example in Section 22.3. Suppose that by postponing the project for a year, you do not miss out on any cash flows. Instead all cash flows are simply delayed by one year. What is the value of the option to invest in the malted herring plant?
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Related Book For 
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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