Calculate the npv of each choice

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Predator LLC, a leveraged-buyout specialist, 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 at different times as follows: $400,000 if sold one year later; $800,000 if sold two years later; $1,100,000 if sold three years later; and $1,300,000 if sold four years later. The opportunity cost of capital is 10.3 percent. Calculate the NPV of each choice and suggest when should Predator sell the company?

The NPV of each choice is:
NPV1 = $
NPV2 = $
NPV3 = $
NPV4 = $

Predator should sell the company in 1, 2, 3, or 4 years.

Reference no: EM13263824

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