physical assessment

Part 1:Future Enterprises is considering building a factory that will include an option to expand operations in three years. If things go well, the expansion will have an expected value of $10 million and will cost $2 million to undertake. Otherwise, the expansion will have an expected value of only $1 million and will not take place. What information would we need in order to analyze this capital budgeting problem using the traditional NPV approach that we would not need using option valuation techniques?Note – Please note that the requirement is to post your Initial Response (250 words). Make sure you write these answers by conducting some research and cite both textbook and external credible sources.Part 2:Please answer the following Questions.1. What are the five variables that affect the value of an option, and how do changes in each of these variables affect the value of a call option?2. What does the seller of a put option hope will happen?3. What is the value of a call option or a put option if the stock price is zero? What if the stock price is extremely high (relative to the strike price)?4. List and describe four different types of real options that are associated with investment projects.5. How are options related to the agency costs of debt and equity?Note:– Note that each question should be answered in a minimum of 200 words.– Be typed, double spaced, using Times New Roman font (size 12), with one inch margins on all sides and heading; citations and references must follow APA format. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.