Question: Suppose that you can immediately start constructing a hotel on this land that would cost you$70M in the present risk-adjusted value. The present expected and

Suppose that you can immediately start constructing a hotel on this land that would cost you$70M in the present risk-adjusted value. The present expected and risk- adjusted value of the sale price forthis hotel will be $100M.

Shall you immediately start constructing this hotel?

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