Question: An analyst is evaluating a planned 3-year corporate project. The project's cash flows in one of three possible scenarios (beginning in Year 0) are as
An analyst is evaluating a planned 3-year corporate project. The project's cash flows in one of three possible scenarios (beginning in Year 0) are as follows: -50, 5, 5,5 The after-tax value of salvage is 20 . If the project includes a 1 -year option to delay, which of the following represents the project's cash flows after the option to delay is created but NOT EXERCISED? (Hint: Using the Black-Scholes model requires doing something to the upfront cost, but that is separate/different from the "created but not exercised" cash flow perspective) 50,5,5,250,50,5,5,250,0,5,5,250,0,0,0,0
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