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Assume that the project in Example 22 5 pays an annual

Assume that the project in Example 22.5 pays an annual cash flow of $100,000 (instead of $90,000).

a. What is the NPV of investing today?

b. What is the NPV of waiting and investing tomorrow?

c. Verify that the hurdle rate rule of thumb gives the correct time to invest in this case.

a. What is the NPV of investing today?

b. What is the NPV of waiting and investing tomorrow?

c. Verify that the hurdle rate rule of thumb gives the correct time to invest in this case.

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