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Cash flows (in millions) are shown for a project that can be run three years, but can be terminated early after each of the first
Cash flows (in millions) are shown for a project that can be run three years, but can be terminated early after each of the first two years. Year Cash Flows: No Early Termination Cash Flows: Terminate after two years Cash Flows: Terminate after one year 0 140 -140 140 1 80 80 125 2 150 180 3 50 The required return is 15%. How long should you run the project? 1 year 2 years 3 years The project should be rejected
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