60 -Consider the Infinitely-Repeated Expansion Game Depicted in Figure 4.3. Suppose

Multiple Choice

60
-Consider the infinitely-repeated expansion game depicted in Figure 4.3. Suppose that the discount rate is 75 percent. What is the present value of the stream of payoffs from cooperation?

A) $22.22 million.
B) $42 million.
C) $51.33 million.
D) $76 million.
E) None of the above.