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(Chapter 7) You are the CEO of Predator LLC, a leveraged buyout specialist, that recently bought a company and wants to determine the optimal time

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(Chapter 7) You are the CEO of Predator LLC, a leveraged buyout specialist, that recently bought a company and wants to determine the optimal time to sell it. You have estimated the after-tax cash flows from the sale at different times as follows: $670,000 if sold today, $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? Year o Year 1 Year 2 Year 3 Year 4

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