Npv with and without the abandonment option

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Find the project's expected NPV with and without the abandonment option

How sensitive is the NPV to changes in the company's WACC? to the percentage of book value at which the asset can be sold?

Now assume that project cannot be abandoned. However, expertise gained by taking it on will lead to an opportunity at the end of year 3 to undertake a venture.

Reference no: EM131848753

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