Question: Suppose you have a project that will produce a single widget. Widgets today cost $1 and the project costs $0.90. The risk-free rate is 5%.

Suppose you have a project that will produce a single widget. Widgets today cost $1 and the project costs $0.90. The risk-free rate is 5%. Under what circumstances would you invest immediately in the project? What conditions would lead you to delay the project? Discuss.

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