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Wilson's Antiques is considering a project with an initial cost today of $8,000. The project has a life of 2 years with cash inflows of

Wilson's Antiques is considering a project with an initial cost today of $8,000. The project has a life of 2 years with cash inflows of $6,200 a year. Should the firm decide to wait one year to

commence this project, the initial cost will increase by 8 percent, and the cash inflows will increase to $6,800 a year. What is the value of the option to wait at a discount rate of 10 percent?

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