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initial cost of the project = $2500000
discounted inital cost of the project = $2029000
in the answer the Exercise price in bsop model (Pe) is the undiscounted initial cost of the project,could you please tell me why we’ve not taken the discounted value?
The phrasing of your question suggests that you want the tutor to answer. If you want the tutor to answer directly please use the ask the tutor forum as this forum is primarily designed for students to help one another-
Hope this helps.