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Consider a project that costs $5000 and has an expected future cash flow of $1000 per year forever. If we wait one year, the cost
Consider a project that costs $5000 and has an expected future cash flow of $1000 per year forever.
If we wait one year, the cost will increase to $6000 and the expected future cash flow will increase to $1200.
If the required return is 10%, should we accept the project?
If we should, when should we start the project and why
please shows steps please.
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