Question: Marcal can wait for 1 year and find out whether the cash flows will be $50 million per year or $90 million per year before

Marcal can wait for 1 year and find out whether the cash flows will be $50 million per year or $90 million per year before deciding to purchase the company. If it waits to purchase, Marcal can no longer sell the company for $450 million 2 years after purchase. Does decision-tree analysis indicate that it makes sense to purchase the electronics company? If so, when? Again, assume that all cash flows are discounted at 15%. (NPV calculation required)

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