=+5. Equation (15.5) (page 586) shows the net present value of an investment in an electric motor

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=+5. Equation (15.5) (page 586) shows the net present value of an investment in an electric motor factory. Half of the

$10 million cost is paid initially and the other half after a year. The factory is expected to lose money during its first two years of operation. If the discount rate is 4 percent, what is the NPV? Is the investment worthwhile?

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Oct 28, 2024 12:00 AM

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=+5. Equation (15.5) (page 586) shows the net present value of an investment in an electric motor

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Microeconomics

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