Question: Wilson's antiques is considering a project that has initial cost today of $14,000. The project has a life of to years with cash inflows of

Wilson's antiques is considering a project that has initial cost today of $14,000. The project has a life of to years with cash inflows of 9,500 a year. Should Wilson's decide to wait 2 years to commence this project, then initial cost will increase by 3% and the cash inflows will increase to $11,000 a year. what is the value of the option to wait at the applicable discount rate is 12%.

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