Question: Rework Problem 12-1 using the Black-Scholes model to estimate the value of the option. (Hint: Assume the variance of the projects rate of return is

Rework Problem 12-1 using the Black-Scholes model to estimate the value of the option. (Hint: Assume the variance of the project’s rate of return is 6.87 percent and the risk-free rate is 8 percent.)

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