explanations for the changes in value you computed? Problem 2. Project Alpha has two phases. You may invest in the first, in both, or in neither. The first phase requires an investment of $100 today. One year later, Alpha will deliver either $120 or $80, with equal probability. At that time, (after the phase 1 payout has been received) you can invest an additional $100 for phase 2. One year later phase 2 pays out either 20% more cash than phase 1 actually delivered, or (equally likely) 20% less. For investments in this business, your company normally applies a 10% hurdle rate. a. How much would Project Alpha be worth if it offered only the phase 1 cash flows, without the phase 2 opportunity? b. How much would the phase 2 opportunity be worth if you had to choose today, once and for all, whether or not to invest in it? c. Assuming you can wait to decide about phase 2, what is the total value of Project Alpha? Should you invest the first $100