expansion option someone, require, capital, question, budgeting

torontoanalyst

Can someone please explain this CFAI curriculum question- Reading 27 Page 77 #18 in capital budgeting. Would expansion require 2 C$190 million investments?

bingbingliang

no, just the one. however you add to that negative, the two possible income streams.

huangxiaoxie

one at time 0,
and if that is successful, once more at time 1...

CP