Abandonment henteleff inc is considering a project with the

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Abandonment. Henteleff, Inc. is considering a project with the following data:

Year

Initial Investment

and Net Cash Flow

Abandonment

Value in Year t

0

($8,000)

$8,000

1

4,000

4,500

2

4,000

3,000

3

4,000

0

The firm's cost of capital is 10 percent. What should the company do?

Reference no: EM13484467

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