a)
To find: The
Introduction:
The variations between the present value of the
b)
To find: The value of the option to abandon.
Introduction:
The cash value or the equivalent value that are associated with an asset is the abandonment value and it is also known as the liquidation value. The abandonment value is significant for a firm at the time of analyzing the profitability of a specific project or asset and taking decisions on whether it has to be maintained or abandoned.
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