Problem 11.23 When to Harvest an Asset Predator, LLC, a leveraged buyout specialist, recently bought a company and wants to determine the optimal time to sell it. The partner is charge of this investment has estimated the after-tax cash flows at different times as follows: $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? Why? When should you sell the company? Hint: Calculate the net present value (NPV) of each alternative and choose the one with the highest NPV. Cost of Capital: 12.00% Year CashFlow NPV of Alternative The maximum NPV given the alternatives is