Consider a project that costs 1 million today but yields no returns for several years. Once the project becomes productive, it yields 250,000 annually forever. Suppose two firms are examining this project, a Japanese firm with a cost of capital of 7% and a U.S. firm with a cost of capital of 13%. Approximately how many more years than the U.S. firm would the Japanese firm be willing to wait until the project starts generating cash?

a) 14 years <- answer : WHY?