What does in the yellow large box in question #1 and how do I find the total expected value in question #2???

B C D E F G Discount rate H I K 6.0% M N 0 P R S T U V W Y 2 AA AB AC AD AE 4 Risk-free rate 21% Option Pricing: PV of Cap. Ex. [Yrs. 1-2] Network Expansion with New Aircraft PV of 5 Start Phase I Scenario: No Real Options Phase II Phase III Maturity Revenu Probabi Expecte 30 Star es Costs Net 2 3 4 lity 5 6 PV of NCF d Value 7 Cash from Operations 11 2.1 3.0 40 6.0 8.0 110 Success 244 Risk free rate B minus: Capital Expendity 3.0 4.0 10 10 13 20 80% 11 18 1.0 Volatility 25% 9 = Net Cash Flow (NC Utah 3.0 [2.9) 1.1 20 27 4.0 6.2 10.0 BS calculations 10 Terminal Value 30% 8 110 d1 #DIVOI 11 PV of NCF 19.65 Failure N[d1) #DIVO! 12 20% Scenario: Real Options 2 d2 #DIVO! 13 Start 2 3 4 5 6 7 N(d2) #DIVO! 14 Cash from Operations 21 3.0 Success 278 1.1 40 6.0 8.0 11.0 Price of call #DIV/O! 15 minus: Capital Expenditures 70% 10 10 13 21 20 1.8 10 Difference: 16 = Net Cash Flow [NCF] Colorado 1.1 1.1 2.0 2.7 4.0 6.2 10.0 - Value of Option over F #DIVO! 28% 17 Terminal Value 10 110 - % of PV #DIVO! 18 PV of NCF 27.2 Failure 19 PV of Cap. Ex. [Yrs. 1-2] 7.5 30% 20 Success 21 70% 13 Success 267 22 659% 23 11 24 Arizona 25% 9 Start Failure 5 35% Failure 17% 3 Failure 30% 3 Total