An award is being established, and it will pay $11 comma 00011,000 every twotwo years, with the first installment being paid in twotwo years. the award will be given for an indefinitely long period of time. if the interest rate is 33% per annum, what lump-sum amount of money (invested now) will be required to endow this award forever?

Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?