Use the Information for the Question(s)below

question 24

Multiple Choice

Use the information for the question(s) below.
You own a small manufacturing plant that currently generates revenues of $2 million per year.Next year,based upon a decision on a long-term government contract,your revenues will either increase by 20% or decrease by 25%,with equal probability,and stay at that level as long as you operate the plant.Other costs run $1.6 million per year.You can sell the plant at any time to a large conglomerate for $5 million and your cost of capital is 10%.
-Assume that it will cost $1 million to shut down the plant,but you are able to sell the plant for $5 million at any time.The value of the option to sell the plant will be closest to:

• A)$3.0 million.
• B)$6.0 million.
• C)$5.0 million.
• D)$0.5 million.

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Sexuality

A broad spectrum of conditions that encompass sexual preference, identity, and behavior.

Sense of Touch

The ability to perceive pressure, temperature, and pain through the skin, one of the five traditional senses.

Thrive

To grow, develop, or be successful, especially under favorable conditions or in a particular aspect such as health, economy, or personal development.

Physical Attractiveness

pertains to the attributes, qualities, or features of an individual that are considered aesthetically pleasing or beautiful by others.