Question
This project can be undertaken in any time from now. The discount rate is 10%. The present values of the revenues and the costs at
This project can be undertaken in any time from now. The discount rate is 10%. The present values of the revenues and the costs at each year are given below. What is the optimal investment time?
| Year | 0 | 1 | 2 | 3 |
| Cost | $20.00 | $18.00 | $15.00 | $14.50 |
| Revenues | $25.00 | $25.00 | $25.00 | $25.00 |
____
A) Now
B) Year 1
C) Year 2
D) Year 3
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Auditing The Art And Science Of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser-Hogeterp
11th Edition
0132088061, 978-0132088060
