Question: please question2 . thanks will give thumbs up You can invest in a prohect either now or next year. If it is successful, you get
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: 2. If you wait a year, you will know wheather the project will be successful (the chance of success is still 50%). What is the NPV today of the project if you decide to wait a year before making your decision? $ million (round to two decimals)
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