Would your firm be better off starting the project now

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Question - Your firm is considering a project with a discount rate of 9%. If you start the project today, your firm will incur an initial cost of $490 and will receive cash inflows of$365 per year for 3 years. If you instead wait one year to start the project, the initial cost will rise to $530 and the cash flows will increase to $405 a year for the following 3 years. Would your firm be better off starting the project now or waiting to start the project in a year? Explain clearly.

Reference no: EM133042210

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