What is the value of the option to


You are considering a project that has been assigned a discount rate of 11%. If you start the project today, you will incur an initial cost of $487 and will receive cash inflows of $348 a year for three years. If you wait one year to start the project, the initial cost will rise to $527 and the cash flows will increase to $387 a year for three years.

What is the value of the option to wait? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places)

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Financial Management: What is the value of the option to
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