Question: Infinity Limited is considering whether to embark on a 6-year project in Spain. However, there is a possibility that the Spanish government will seize the

Infinity Limited is considering whether to embark on a 6-year project in Spain. However, there is a possibility that the Spanish government will seize the assets of Infinity Limited in any given year over the life of the project with increasing probability of 4.50 percentage points per annum. How many possible scenarios should Infinity Limited factor into their capital budgeting analysis of this project?

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