Question: Consider the SportHotel example and assume a 5 0 % probability of being awarded the franchise. Why did the NPV , initially determined to be

Consider the SportHotel example and assume a

50 %

probability of being awarded the franchise. Why did the NPV

,

initially determined to be $

0,

rise to $

1

million?Group of answer choicesbecause the discount rate went downbecause the option to defer taxes was factored inbecause the option to expand the project was factored inbecause depreciation was factored inbecause the option to abandon was factored in

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