Question: need help solving please !! Real opticens and the strategic NPV Jenny Rene, the CFO of Roor Prodocts, inc, has just completed an evaluabion of
Real opticens and the strategic NPV Jenny Rene, the CFO of Roor Prodocts, inc, has just completed an evaluabion of a proposed caplal expenditure for equipnent that would Belou roconmending rejedion of the proposed proled she has decided to assess whether real options might be embedded in the firm's cash fous. Her evaluation uncevered three. Qption 1 Asandonmient- The projed could be abundoned at the end of 3 years, resulting in an addtion to NPV of $1,100 oftiohs and thein probability oqfion in esfimated to add 53260 to the proincis NPY. plarece. Soct o delyy in inclomentation in that polet has an NPY of 511300 chasce that the lechlemertathe of cectath phases of the proled would afed tining: n. The vilue of the teal oglintes is (Pound to the ne sest dolar)
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