You have the option to launch the below project only once beginning with today $($Year $0)$ or waiting up to $5$ years in the future. The benefit of waiting is that the initial cost goes down each year as the technology used for this project becomes more widely available. Your firm applies a discount rate of $10\%$ to projects of this risk level. At what point in time would you suggest that the firm launches the project? Demonstrate the calculation of how you came to that conclusion.

YEAR $($t$)$ INITIAL COST $($t$)$ PV OF FUTURE CFS $($t$)$ NPV$($t$)$

$0$ $$50,000$ $$60,000$ $$10,000$

$1$ $$46,000$ $$60,000$ $$14,000$

$2$ $$43,000$ $$60,000$ $$17,000$

$3$ $$41,000$ $$60,000$ $$19,000$

$4$ $$38,000$ $$60,000$ $$22,000$

$5$ $$37,000$ $$60,000$ $$23,000$