Use Cox-Ross-Rubenstein to construct a 2-year binomial tree for the evolution of cash flows with a binomial period of 1. Assume the initial cash flow is (CF1 ) = $62 million, ? = 0.20,
rp = 0.14, and g = 0.03.
What is the highest possible value of the project?
A) $222 million
B) $314 million
C) $622 million
D) $841 million
D
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