Demand (in hundreds) 4 5 6 Probability 0.30 0.50 0.20 Current purchase price Present value of...
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Demand (in hundreds) 4 5 6 Probability 0.30 0.50 0.20 Current purchase price Present value of future cash flows if hotel and airport are built at this location Parcel of Land Near Location A $18 B $12 $31 $23 Present value of future sales price of parcel if the airport is not built at this location $6 $4 Demand (in hundreds) 4 5 6 Probability 0.30 0.50 0.20 Current purchase price Present value of future cash flows if hotel and airport are built at this location Parcel of Land Near Location A $18 B $12 $31 $23 Present value of future sales price of parcel if the airport is not built at this location $6 $4
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