Question: Suppose IBM can introduce a new technology now or wait one year. The cash flows for investing now or postponing one year are: If the

Suppose IBM can introduce a new technology now or wait one year. The cash flows for investing now or postponing one year are:


Suppose IBM can introduce a new technology now or wait


If the cost of capital is 10%, should IBM invest now or postpone and invest in oneyear?

TIME Invest now- Invest in one year400 150 150 150 150 150 200 50 100 100 100 100 100

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