An investment of ($ 100) today will avoid ($ 1,000,000) of environmental damage in 100 years. a.
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An investment of \(\$ 100\) today will avoid \(\$ 1,000,000\) of environmental damage in 100 years.
a. At a discount rate of \(10 \%\), is this investment a good idea?
b. At a discount rate of \(1 \%\), is this investment a good idea?
c. At a discount rate of \(2 \%\), what is the maximum we would be willing to pay to avoid the million dollars of environmental damage in 100 years?
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