Consider a perpetual project that can be undertaken now or delayed by 1,2,3, or 4 years. The initial investment is $570. The annual cash flows are $105 but will increase by $3 for each year of waiting. The discount rate is 12%. Find the NPV for the best time to launch. $331 $287 $305 $283 $327 QUESTION 6 "Consider a $1127 investment that will produce perpetual cash flows. If the demand turns out to be high, the expected cash flows will be $190 per year. Otherwise, the expected cash flows will be $29 per year. The intial probabilities for high vs. low demand are 20%/80%. Before the investment is made, an initial market test, costing $152, can reveal with certainty whether the demand is high or low. The cost of capital is 10%. Assume that $152 for market test would have to be spent now and $1127 would be invested at the end of year 1 . What is the NPV now if the firm does the marketing test and makes the investment decision conditional on its outcome?" ($17) (\$18) (\$17) (\$22) (\$11)