Hi Sir, why is the Pe $35m ? what about the $7m that the co. spend today and year 1? how do we determine Pe?
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Mesmermagic (june2011)q3
11y ago#1We are spending the 7M.s anyway.
The option is that we will have the choice as to whether or not to invest the 35M (instead of having to decide immediately). so 35M is the exercise price - that is the amount we will pay if we do decide to exercise the option and continue.
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