Look again at the valuation in Table 22.2 of the option to invest in ...

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Accounting

Look again at the valuation in Table 22.2 of the option to invest in
the Mark II project. Consider a change in each of the following inputs. Would the change
increase or decrease the value of the expansion option?
a. Increased uncertainty (higher standard deviation).
b. More optimistic forecast (higher expected value) of the Mark II in 1985.
c. Increase in the required investment in 1985.

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