Question: considering an option to expand when calculating a project's NPV. The NPV at t=0 for the project with no expansion is -$4,773. The NPV at
considering an option to expand when calculating a project's NPV. The NPV at t=0 for the project with no expansion is -$4,773. The NPV at t=0 for the expansion part of the project is $79,436. First, what is the NPV at t=0 for the project if the expansion occurs. Second, what is the overall project NPV at t=0 if the probability of expansion is 50%?
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