Business, 12.08.2020 06:01 destromero
Applications of option pricing to corporate finance Fantastique Inc. has a one-year proprietary license to develop software essential for creation of a new generation of FastGadgets. The project’s estimated cost is $25 million. If consumers love the new FastGadget, Fantastique’s revenues will skyrocket. Otherwise, if sales of FastGadgets turn out to be low, Fantastique will be ruined. Fantastique has an option similar to a option, which enables it to minimize the risk by taking the following action:.
A. Wait for a year and then undertake the project if there is a great demand for the FastGadget.
B. Undertake the project now to get ahead of the industry in creating the software.
C. Abandon the project now because it is too risky.
D. Wait for a year and then sell the license if consumers love FastGadget.
Answers: 3
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Tandard product costs deerfield company manufactures product m in its factory. production of m requires 2 pounds of material p, costing $4 per pound and 0.5 hour of direct labor costing, $10 per hour. the variable overhead rate is $8 per direct labor hour, and the fixed overhead rate is $12 per direct labor hour. what is the standard product cost for product m? direct material answer direct labor answer variable overhead answer fixed overhead answer standard product cost per unit answer
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When the federal reserve buys and sells bonds to member banks, it is called a. monetary policy b. reserve ratio c. interest rate adjustment d. open market operations
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Applications of option pricing to corporate finance Fantastique Inc. has a one-year proprietary lice...
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