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: $700,000 if sold one year later; $1,000,000 if sold two years later; $1,200,000 if sold three years later; and $1,300,000 if sold four years later. The opportunity cost of capital is 12 percent. When should Predator sell the company? Why?