What is the value of the option to invest in Comp-II?

1. Your firm is looking at a proposal to manufacture a certain computer called Comp-I. The

 

projected cash flows for this proposal are as follows:

The discount rate applicable to this proposal is 20 percent.

If your fi rm undertakes Comp-I proposal, it will be in a position to make a follow on

investment in an advanced version, Comp-II, four years from now. Comp-II will be double

the size of Comp-I in terms of investment outlay and cash infl ows. The cash infl ows of Comp-

II would have a standard deviation of 30 percent per year.

(a) What is the net present value of the cash fl ows of Comp-I?

(b) What is the value of the option to invest in Comp-II?

Assume that the risk-free rate is 12 percent.

 

find the cost of your paper

Suggest a modification of the binary search algorithm that emulates this strategy for a list of names.

1. Suppose that a list contains the values 20 44 48 55 62 66 74 88 93 99 at index positions 0 through 9. Trace the values of the variables….

Explain why insertion sort works well on partially sorted lists.

1. Which configuration of data in a list causes the smallest number of exchanges in a selection sort? Which configuration of data causes the largest number of exchanges? 2. Explain….

Draw a class diagram that shows the relationships among the classes in this new version of the system

Jack decides to rework the banking system, which already includes the classes BankView, Bank, SavingsAccount, and RestrictedSavingsAccount. He wants to add another class for checking accounts. He sees that savings….