Question: You are considering a project which has been assigned a discount rate of 5 percent. If you start the project today, you will incur an

You are considering a project which has been assigned a discount

You are considering a project which has been assigned a discount rate of 5 percent. If you start the project today, you will incur an initial cost of $4,100 and will receive cash inflows of $2,900 a year for 2 years. If you wait one year to start the project, the initial cost will rise to $4,320 and the cash flows will increase to $3,257 a year for 2 years. What is the value of the option to wait? (Do not round intermediate calculations.) $505.35 $361.14 $605.85 $3,389.53 O $443.81

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