Wildhorse Partners LLC has been farming a new strain of radioactive-material-eating bacteria that the electrical utility industry can use to help dispose of its nuclear waste. Two opposing factors affect Wildhorses decision of when to harvest the bacteria. The bacteria are currently growing at a 18 percent annual rate, but due to known competition from other top firms, Wildhorse analysts estimate that the price for the bacteria will decline according to the schedule below. If the opportunity cost of capital is 11.0 percent, then when should Wildhorse harvest the entire bacteria colony at one time?

Year Change in Price Due to Competition (%)

1 5%

2 -2

3 -8

4 -10

5 -15

6 -25