Question: Growth Option: Decision - Tree Analysis 2 years. If demand is bad ( ( 6 0 % ) probability ) , then
Growth Option: DecisionTree Analysis years. If demand is bad probability then the net cash flows will be $ per year for years. Fethe's cost of capital is Do not round intermediate calculations. a What is the expected NPV of the project? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest dollar. Years and it will continue to be good in Years and Write out the decision tree. Note: The franchise fee payment at the end of Year is known, so it should be discounted at the riskfree rate, which is Select the correct decision tree. A B C D The correct graph is
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