Question: Please provide the CORRECT answer to this question. Please read the question CAREFULLY and DOUBLE CHECK your answer BEFORE posting it. Thank you! Yardie Global

Please provide the CORRECT answer to this question. Please read the question CAREFULLY and DOUBLE CHECK your answer BEFORE posting it. Thank you!

Yardie Global is considering expanding a cruise line division next year (t=1) or waiting a year due to public health concerns. The cruise line has a discount rate of 11 percent and has an NPV today ( t=0 ) of $40M. If they wait one year for market research, there is a 30 percent chance that the NPV next year (t=1 ) could be $150M and 70 percent chance that they will cut the division. Should they wait? Yes No It makes no difference

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