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You are considering a project that has been assigned a discountrate of 8 percent. If you start the project today (t=0), you willincur an initial cost of $980 and will receive cash inflows of $475a year for three years. If you wait one year to start the project,the initial cost will rise to $1,000 (at t=1) and the cash flowswill increase to $515 a year for three years (starting from yeart=2). Should you wait one year to start the project?No, because NPV at t=0 is lower by $31.58No, because NPV at t=0 is lower by $25.42Yes, because NPV at t=0 is higher by $58.85Yes, because NPV at t=0 is higher by $37.45Yes, because NPV at t=0 is higher by $18.66
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