When should the firm undertake the project

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A firm has a choice of undertaking a project now or next year. The cash flows in the two cases are as follows

Time                              0          1         2         3

Start now                    - 10       12       18        0

Start next year              0        -8        13        17

When should the firm undertake the project if the discount rate is 5 percent

Reference no: EM131566176

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