corporate financial management.

Finance: Real Options. Problem related to corporate financial management.
Requirements
IMPORTANT. You must complete all the parts using calculations in excel and write the required answers
in the
word. Please provide me the answered word file, calculations and excel file.
Important hint and Note: All problems are approached DCF, Capital budgeting, B-S/M (Black-Scholes &
Merton) model, simple scenarios, Binomial Option Pricing Model, Decision Tree Analysis which ever
appropriate
to the problems listed. No NPV(q) method.
Important: NO need of Problem 1, 2 and 4 in the attached material (Corporate Financial
Management:Options Exercises, available online as well
(http://s3.amazonaws.com/d1.tutorpl.us/qa/attachments/2015/10/27/8/0/617641f7635a1d55563e8bccd95774ae.
pdf)

ONLY need below problems.
Requirement 1. Pls refer Problem No. 3 in the attached material of Corporate Financial
Management:Options
Exercises for this requirement.
1. Problem No. 3 in the attached material of Corporate Financial Management:Options Exercises. Pls
answer all questions. Pls submit the calculations, in excel. Pls Write answers in word.
Requirement 2. Pls refer below problem.
2. Hint: Below problem is a Decision Tree topic. I think it’s a Decision tree analysis problem.
Thinking
like a Strategic Manager. Pls answer all questions. Pls submit the calculations, in excel. Pls Write
answers in word.
Problem. As a strategy consultant to a cosmetics company, you are considering a market entry strategy
for introducing a new product in two different markets: say Market I (New York) and Market II (Los
Angeles). The new product will succeed in Market I and in Market II with equal probability. Likewise,
it
will fail in Market I and in Market II with equal probability. Market I and Market II are otherwise
independent (be careful how you interpret this independence notion). You may advise the company to
enter the markets either sequentially, or concurrently either now; one year from now; or two years from
now. Note that later (or deferred) entry is not possible (Source: A modification from attached material
problem#4).
Market I requires an initial outlay of $2000.00 regardless of the entry time. If the product is
successful in
Market I, then the payoff will be $3000.00 a year later (at time t=1); and if it fails, the payoff will
be
$1800.00. Entry in Market II, however, requires an initial (now) outlay of $1100.00 regardless of the
entry
time. If the product is successful in Market II, then the payoff will be $2600.00 a year later (at time
t =1);
and if it fails, the payoff will be $400.00. The cost of capital for discounting should be 10% per
annum
for simplicity. In your best estimate and given past experience with similar products, this product
will
succeed or fail in both markets with equal likelihood. That is, the probability of success or failure
in each
market is .50!
For each Market, supposing immediate (concurrent) entry, what is the resulting net present value?
Consider the sequential vs. concurrent strategies. Which alternative is most valuable? Why?
In your view is there any “learning” in this strategic entry approach?
Should “learning” enter your analysis? How? Why?