Question
You have computed the Net Present Value of a project to be 150,000. However, if you wait one year, you can use a better technology
You have computed the Net Present Value of a project to be 150,000. However, if you wait one year, you can use a better technology and the NPV will be 165,000. Of course, that is an NPV one year from today. The cost of capital is 15% so should you invest?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
