USING AI WILL GET YOU DOWNVOTED PLEASE SOLVE CORRECTLY. Suppose you are trying to decide whether you want to

undertake a R&D project. The initial investment is $$100$

million. The upcoming costs are uncertain and there are

three possibilities that are equally likely:

Low cost $($of $$150$ million$)$

Medium cost $($of $$260$ million$)$

High cost $($of $$350$ million$)$

The expected revenue is going to be $$350$ million the same

year the project is initiated.

The initial investment of $$100$ million allows you to learn if

the cost will be high, medium or low, and allows you make

the investment only if it is profitable to invest. If not you

abandon the project.

Find the NPV of the project with this embedded optionality.

Interest rate is $0\%.$

$0$

$$93\mathrm{.}33$ million

$-$$$3\mathrm{.}33$ million

$-$$$5$ million