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Unformatted text preview: way that they will have an option to abaondon the project at the end of year one and sel and received cash assets at the end of year 2 if things are going badly. a. Calculate the Expected NPV of the project under each of the 2 situations. b. Calculate the Abadonment Option Value for the...
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- Fall '08
- 12.00%, Best Case Base, Case Worst Case, Case Base Case, 4 25112 23116 13512 12.00%