Question: 1. (10 points) Suppose that you can immediately start constructing a hotel on this land that would cost you $70M in the present risk-adjusted value.

1. (10 points) Suppose that you can immediately start constructing a hotel on this land that would cost you $70M in the present risk-adjusted value. The present expected and risk- adjusted value of the sale price for this hotel will be $100M. Shall you immediately start constructing this hotel? Justify your

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