Question: I don't understand what I am doing wrong please help You are an analyst Marking tor Goldman Sachs. and you are trying to value the

I don't understand what I am doing wrong please help

I don't understand what I am doing wrong please
You are an analyst Marking tor Goldman Sachs. and you are trying to value the growth potential of a large. established company. Big industries. Big industries has a thriving R&D division that has consistently turned out successful products. You estimate that. on average. the division launches two protects every three years, so you estimate that there is a 70% chance that a project Will be produced every year Typically, the investment opportunities the R&D division produoes require an initial investment ol $10.1 million and yield profits of $0.99 million per year that grow at one of tlrree possible growth rates in perpetuity 2.5%. u 0%, and 2 6% All three growlh rates are equally likely rpr any given project These opporlunities are aiways "lake itor leave it" opportunities it they are nDl undertaken immediately, they disappear lorever Assume that the cost at mpilal will always remain at 12.1% per year. What is the present value of all future growth opportunities Big industries will produce? (Hint Make sure to round all intermediate calculations to atleast [our decimal places.) What is the present value of all future growth opportunities? The present value is $ million. (Round to three decimal places )

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