Question: please answer question3. will give thumbs up thanks You can invest in a prohect either now or next year. If it is successful, you get

please answer question3. will give thumbs up thanks please answer question3. will give thumbs up thanks You can invest in

You can invest in a prohect either now or next year. If it is successful, you get an expected cash flow of $75 million the following year (the year after investing), if it is unsuccessful, you get an expected cash flow of $9 million the following year (the year after investing). The project costs $20 million at the time of the initial investment, and has a discount rate of 10%. The chance of success is 50%. Answer the following questions: million 3. What is the value of the option to wait? $ (round to two decimals)

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