please answer both 14 anf 15

QUESTION 14 Long QT (16 points total A(6 points) Your friend wants to start a deep seashing company in the 600 babe there successful and they will get free cash flows of 144,000 per year. There som cheyecard Estarting at 1) Assume these cash flows are a perpetuity. The discounts 11. What to do What is the expected NPV of the deep thing company B (s points) Your friend asks you to analyze their business plan. When you look at the plan you real that they are the one expand you friend is successful with one boat, they can scale up their operations to boats total with the same cond yearly cash flow the with the option to expand C(s points) When you identified the real option, you added lots of value to your friend's business idea and really changed the projects took Hou much this real option worth? (if you did not calculate Part A or Part 8, you can assume the NPV of PTA 10,000 and the Nivo Pan - 10000) QUESTION 15 Show work -- Long 01 TTT Arial 3 (12) : T. QUESTION 14 Long Q! (16 points total) A (6 points) Your friend wants to start a deep sea fishing company in Galveston. It will cost them $300,000 to buy a boat and supplies. There is a 50% chance they are Successful and they will get free cash flows of $44,000 per year starting at t-1). There is a 50 chance they are unsuccessful and they only get $16.500 per year (starting at t-1) Assume these cash flows are a perpetuity. The discount rate is 11. What is the NPV of this deep sea fishing company when they are successful What is the expected NPV of this deep sea fishing company? B (5 points) Your friend asks you to analyze their business plan. When you look at their plan, you realize a that they have a real option - the option to expand your friend is successful with one boat, they can scale up their operations to 3 boats total with the same costs and yearly cash flows). What is the value of this project with the option to expand? I C(5 points) When you identified the real option for Blank 2. lots of value to your friend's business idea and really changed the project's outlook. How much values this real option worth? (if you did not calculate Part A or Part B, you can assume the NPV of Part A - -10,000 and the NPV of Part 8 - +10000) QUESTION 15 Show work - Long 01 TTT Aral 3 (12pt) T. Not Sort and Submit to save and submit. Click Save All Answers to save all answers, MacBook Pro A (6 points) Your friend wants to start a deep sea fishing company in Galveston. It will cost them $300,000 to buy a boat and supplies. There is a so chance they are successful and they will get free cash flows of $44,000 per year (starting at t#1). There is a 50% chance they are unsuccessful and they only get $16.500 per year {starting at t1). Assume these cash flows are a perpetuity. The discount rate is 11. What is the NPV of this deep sea fishing company when they are succes What is the expected NPV of this deep sea fishing company? 6 (5 points) Your friend asks you to analyze their business plan. When you look at their plan, you realize a that they have a real option the option to expand your friend is successful with one boat, they can scale up their operations to 3 boats total (with the same costs and yearly cash flows). What is the value of this project with the option to expand? C(5 points) When you identified the real option, you added lots of value to your friend's business idea and really charged the project's outlook. How much values this real option worth (if you did not calculate Part A or Part 8, you can assume the NPV of Part A -10,000 and the NPV of Part B +10000)