Calculate the net present value of each option. Assume a 12% discount rate. Timing Year 0 Year

Calculate the net present value of each option. Assume a 12% discount rate.

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Timing Year 0 Year 1 Year 2 Year 3 Year 4 $ $ $ $ Option 1 9000000 0 0 0 0 LA Amount Option 2 0 2874000 2874000 2874000 4874000 $ $ S S Option 3 -1500000 1600000 2500000 3400000 3700000 Timing Year 0 Year 1 Year 2 Year 3 Year 4 $ $ $ $ Option 1 9000000 0 0 0 0 LA Amount Option 2 0 2874000 2874000 2874000 4874000 $ $ S S Option 3 -1500000 1600000 2500000 3400000 3700000

Answer rating: 100% (QA)

Question option 1 sell the plant immediately the preset value of cash inflow in that case 9... View the full answer