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

  1. 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%? 

  3. $ million 

  5. 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.

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