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Wellpoint Corporation is considering a project that has been assigned a discount rate of percent. If the company starts the project today, it will incur
Wellpoint Corporation is considering a project that has been assigned a discount rate of percent. If the company starts the project today, it will incur an initial cost of =and will receive cash inflows of a year for five years. If the company waits one year to start the project, the initial cost will rise t and the cash flows will increase to year for five years. What is the value of the option to wait?
$85,006.27 | ||
$79,317.26 | ||
$73,249.55 | ||
$67,447.15 | ||
$59,784.16 |
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