Consider a perpetual project that can be undertaken now or delayed by 1, 2, 3, or 4
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Consider a perpetual project that can be undertaken now or delayed by 1, 2, 3, or 4 years. The initial investment is $996. The annual cash flows are $186 but will increase by $9 for each year of waiting. The discount rate is 12%. Find the NPV for the best time to launch.
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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