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What is the value of the option to wait

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If you start the project today, you will incur an initial cost of $8336 and will receive cash inflows of $5433 a year for two years. If you wait one year to start the project, the initial cost will rise to $9358 and the cash flows will increase to $5703 a year for two years.

What is the value of the option to wait if the discount rate is 10%?

Reference no: EM131732886

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