Only the highlighted question #2 is what I need help with. I've provided two of the same excel spreadsheet so that you could see everything thing that needs to be provided.

E Home X Mail - Collier, Chelsea - 0 X E Final Exam X C 2. Real Options DC Airlin X Course Hero X *11021602 (1242x2208) x + X C A erau.instructure.com/courses/105115/assignments/1892939?module_item_id=5873579 Tutoring Operating costs - 40% of revenue Hunt Library Discount rate - 10% Tax rate - 21% Bookstore What are the NPV and IRR of the gates? Should Apache invest in them? Account 2. Real Options DC Airlines is looking at expanding its operations in Burbank airport. The airport's management has given it Dashboard a 5-year option on the expansion. The project has the following financials: Initial cash from operations - $3M Cash yearly growth rate - $0.5M Discount rate - 9% Courses Capital expenses (yrs. 1-5) - $11M/year and $1M/year (yrs. 6-15) Risk-free rate - 4% Terminal value - $23M Volatility - 5% Maturity - 5 years Calendar What is the NPV of the No Real Options Scenario and the Real Options Scenario? What is the price of the 5-year call option? What is the value of the option over the Real Option Scenario NPV? Inbox 3. Company Valuation Fley Airline Supply is trading at $15/share but you think that price may not be right. You have the following Studio data and you want to use it to calculate its share price: ? Gross Sales - $124M Annual Sales growth rate - 3.0% Help COGS - 54% of sales Advert., Promotion & Selling - $5M General & Admin - $3.5M Yearly inflation for non-COGS expenses - 3.3% Tax rate - 21% Discount rate - 8% Cash balance - $3M Debt - $5M Shares o/s - 44M Calculate the ner share price and run sensitivities for growth rates of 30% 3 5% and 4% as well as O 5 12:53