Advise on the best time for blossom industries

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Blossom Industries recently bought a company and wants to determine the optimal time to sell it. The partner in charge of this investment has estimated the after-tax cash flows from a sale at different times to be as follows: R700 000 if sold one year later; R1 000 000 if sold two years later; R1 200 000 if sold three years later; and R1 300 000 if sold four years later. The opportunity cost of capital is 12 percent.

Required:

Advise on the best time for Blossom Industries to sell the company and provide supportive justification for your answer.

Reference no: EM133073408

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