PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Textbook Question
Chapter 22, Problem 7PS
Expansion options Look again at Table 22.2. How does the value in 1982 of the option to invest in the Mark II change if
- a. The investment required for the Mark II is $800 million (vs. $900 million)?
- b. The
present value of the Mark II in 1982 is $500 million (vs. $467 million)? - c. The standard deviation of the Mark II’s present value is only 20% (vs. 35%)?
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Chapter 22 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 22 - Real options Respond to the following comments. a....Ch. 22 - Prob. 2PSCh. 22 - Real options True or false? a. Real-options...Ch. 22 - Prob. 4PSCh. 22 - Real options Describe each of the following...Ch. 22 - Expansion options Look again at the valuation in...Ch. 22 - Expansion options Look again at Table 22.2. How...Ch. 22 - Prob. 8PSCh. 22 - Timing options Look back at the Malted Herring...Ch. 22 - Prob. 10PS
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