A company is considering a project that has been assigned a discount rate of 14 percent. If
Fantastic news! We've Found the answer you've been seeking!
Question:
A company is considering a project that has been assigned a discount rate of 14 percent. If the company starts the project today, it will incur an initial cost of $695,000 and will receive cash inflows of $230,000 a year for five years. If the company waits one year to start the project, the initial cost will rise to $742,000 and the cash flows will increase to $256,000 a year for five years. What is the value of the option to wait?
$28,841.95 | ||
$27,051.08 | ||
$26,683.92 | ||
$25,451.66 | ||
$24,780.30 |
Related Book For
Posted Date: