cferguson
cferguson
20.04.2021 • 
Business

Wilson's Antiques is considering a project with an initial cost today of $9,500. The project has a life of 2 years with cash inflows of $6,400 a year. Should the firm decide to wait one year to commence this project, the initial cost will increase by 4 percent, and the cash inflows will increase to $7,000 a year. What is the value of the option to wait at a discount rate of 12 percent

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