Wilkes, Inc., must invest in a pollution-control program in order to meet federal regulations to stay in business. There are two programs available to Wilkes: an all-at-once program that will be...

Wilkes,
Inc., must invest in a pollution-control program in order to meet federal
regulations to stay in business. There are two programs available to Wilkes: an
all-at-once program that will be immediately funded and implemented, and a
gradual program that will be phased in over the next three years. The immediate
program costs $5 million, whereas the phasein program will cost $1 million
today and $2 million per year for the following three years. If the cost of
capital for Wilkes is 15 percent, which pollution-control program should Wilkes
select?