Both drop down is true or false selection

You and two friends of yours are business partners. You've just had a brilliant product idea. It would require a $20,000 immediate expense to cover all set-up costs and generate estimated $3,000 in annual after-tax profits for the next 9 years. The discount rate is 1096. (This means that the NPV of this pilot project is $-2,723.) You and your friends, however, completely disagree on the estimated annual after-tax profit amount. Therefore, you believe that your uncertainty can be captured in the expected volatility of these profits that equals 70%. You all agree that if things go better than expected with these after-tax annual profits, then you will expand your business: in such case, you will add 9 more of such products to your production line which will happen upon completion of the first 9-year long pilot product project. (a) TRUE OR FALSE? The lower the volatility (see given) the more it's worth it to expand the pilot project in 9 years. (b) TRUE OR FALSE? When calculating how much value this possibility to expand the product sales will add to the pilot product's value, one can use the Black-Scholes formula. In this formula, the equivalent of the Strike will equal 9x$20,000. HINT: You will not need to u mbers that are given in this problem! TRUE FALSE