Suppose that everything stays the same as was presented in the original problem, except one thing --
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Question:
- Suppose that everything stays the same as was presented in the original problem, except one thing -- the value of the hotel, should the city be awarded the franchise, is not $8 million but instead is $6.00 million. Using this new value of the hotel, what is the NPV of the project assuming that the probability of the city being awarded the franchise is 30%?
- $ million
- Place your answer in millions of dollars using three decimal places. For example, the answer of nine hundred and seventy-five thousand would be entered as 0.975.
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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