Question: . You are considering a project that has been assigned a discount rate of 14 percent. If you start the project today, you will incur
. You are considering a project that has been assigned a discount rate of 14 percent. If you start the project today, you will incur an initial cost of $35,800 and will receive cash inflows of $5,750 a year forever. If you wait one year to start the project, the initial cost will rise to $37,400 and the cash flows will increase to $6,075 a year forever. What is the net present value of the project if you wait one year to invest in the project?
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