Real options analysis for projects

I know this is probably not the right place to ask this but I need some help.

I know this is the wrong place to share this but if someone could help me i would appreciate a lot

Question 2:

Guedes company has observed that the demand for its main product has increased and
considers building a new factory. One way to proceed is to use technology X for the new
factory. In this case, the cost will be €100 (in thousands), and the current time O net cash-flow
will also e €100 with an annual volatility of 28.33%. The real-world probabilities of increase
or decrease in net cash-flows from each node of the tree are 50% and 50%, respectively. The
factory's WACC with technology X is 10% and the riskless return is 4%. We assume discrete
compounding/discounting.

a) Construct the tree for the value of the new factory with technology X for years O to 2.

Hint: First, find the tree of cashflows. Next, create the tree with the factory value at
each node using the node's cashflows as well as the present value of any future
cashflows.
(3 marks)

Alternatively, the company can use technology Y. In this case, the cost and the time O net cash-
flow remain €100 but the volatility is lower, 9.53%. Good and bad states of nature in the tree
are the same as before.

b) Construct the tree for the value of the new factory with technology Y for years O to 2.
The WACC will be different in this case. Why? Compute the new number.

Hint; First, use the present value of cashflows at each node from question a) in order to
extract risk-neutral probabilities. Next, use these risk-neutral probabilities to create the
tree for the value of the factory. Finally, extract the correct WACC using the
constructed tree.
(3