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You are considering a project that has been assigned a discount rate of 7 percent. If...

You are considering a project that has been assigned a discount rate of 7 percent. If you start the project today, you will incur an initial cost of $8,000 and will receive cash inflows of $4,550 a year for two years. If you wait one year to start the project, the initial cost will rise to $9,000 and the cash flows will increase to $5,200 a year for two years. What is the value of the option to wait?

Group of answer choices -$331.40 -$194.46 $148.93 $175.21 None of above is correct.

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