In above question , assume abandonment is not an option if the project is a failure and
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In above question , assume abandonment is not an option if the project is a failure and consider the following.
In first question , assume abandonment is not an option if the project is a failure. In addition, suppose the cost of the new production facility will decline by $1,900,000 next year. Should the company make the investment today or delay it by one year? If the company delays the project, the project will last for four years. The NPV of the project is the PV today of the NPV in one year
Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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