Question: Step 4: Binomial Lattice for Underlying Asset Values Construct a binomial lattice based on initial asset value and calculated u u and d d. Step

Step 4: Binomial Lattice for Underlying Asset Values Construct a binomial lattice based on initial asset value and calculated u u and d d. Step 5: Binomial Lattice for Option Values Calculate option values at each node, considering the construction cost ($8330). Step 6: Decision Based on Real Options Use the calculated values from the binomial lattice to evaluate whether allowing for a hydroelectric plant is financially viable compared to not doing so

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