In this video, I walk you through a fairly comprehesive example in Excel that shows how you can calculate the NPV of a project when it offers (both) the option to abandon and the option to expand. In the process, I also explain how one can calculate the worth of these options.
Reference: Corporate Finance (13e) by Ross et al., Problems 7-18, 7-19 and 7-20
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My name is Atif Ikram. I am a Clinical Professor of Finance at Arizona State University, where I teach courses in Corporate Finance, Personal Finance, Real Estate Finance and Investments (wpcarey.asu.ed....
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