Question: Agnes Magna has found some errors in her data (see Section 10.3). The corrected figures are as follows: Redraw the decision tree with the changed

Agnes Magna has found some errors in her data (see Section 10.3). The corrected figures are as follows:

Redraw the decision tree with the changed data. Calculate the value of the option to expand. Which plane should Ms. Magnabuy?

Price of turbo, year 0 Price of piston, year O Discount rate

Price of turbo, year 0 Price of piston, year O Discount rate $350,000 $180,000 8 percent

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