FINE 332 3.2 Real Options and Decision Trees
Zion Aviation Rates: Discount rate Risk-free rate 7.5% 4.5% Start Cash from Operations minus: Capital Expenditures = Net Cash Flow (NCF) Terminal Value PV of NCF Cash from Operations minus: Capital Expenditures = Net Cash Flow (NCF) Terminal Value PV of NCF PV of Cap. Ex. (Yrs. 1-2) 4.0 1 6.0 5.0 Scenario: No Real […]