Abandonment henteleff inc is considering a project with the

Reference no: EM13484467 , Length: 10

Abandonment. Henteleff, Inc. is considering a project with the following data:

Year	Initial Investment and Net Cash Flow	Abandonment Value in Year t
0	($8,000)	$8,000
1	4,000	4,500
2	4,000	3,000
3	4,000	0

The firm's cost of capital is 10 percent. What should the company do?

Reference no: EM13484467

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