(Solution) - Begin with the same setup as Example 22 2 Fuelco s -(2025 Original AI-Free Solution)

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Begin with the same setup as Example 22.2: Fuelco?s investment in Project C. Now, in addition to the assumptions made in the example, we add an additional possibility: Fuelco has an option to sell the patents that underlie Project C for $100M in exactly three years. They can only sell these patents if they have not yet invested the required $200M in the project. Selling the patents has no effect on any of Fuelco?s other projects. How does this new option affect the NPV of Project C?