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QUESTION 6 XYZ owns frozen yogurt shops. The objective of its managers is to maximize...

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QUESTION 6 XYZ owns frozen yogurt shops. The objective of its managers is to maximize shareholder value. The firm is evaluating the turnpike project, which involves building a new shop on the Jersey turnpike. Which assertion is true, based on the information given in the question and te following table on the project? $38.000 Base-case NPV (based on final estimates and expectations) Value created if oil prices hit $50 per burrel (based on scenario analysis) Value created if best-case sales occur (based on sensitivity analysis) Value created if worst-case sales occur (based on sensitivity analysis) Probability that project will create more than 50 of value (based on simulation analysis) $57.000 a. XYZ should reject the turnpike project b.XYZ should accept the turnpike project c. XYZ should be indifferent between accepting and rejecting the turnpike project d. It is not clear whether XYZ should accept or reject the turnpike project, because the cost of capital is not given It is not clear whether XYZ should accept or reject the turnpike project, because the information that is provided is contradictory with respect to answering the

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