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Blossom 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
Blossom 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 from a sale at different times to be as follows: $700,000 if sold one year later, $1,200,000 if sold two years later, $1,300,000 if sold three years later; and $1,400,000 if sold four years later, The opportunity cost of capital is 15.5 percent. Calculate the NPV of each choices. (Do not round foctor values. Round answers to the nearest whole dollor, es. 5,275.) The NPV of each choice is: NPV1$ NPV2S NPV3$ NPV4$ When should Blossom sell the company? Blossom should sell the company in
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