S uppose a factory would be built in one year (year 0) and last only a year

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S uppose a factory would be built in one year (year 0) and last only a year (year 1).

The construction cost in year 0 would be $100,000 financed by borrowing and the profit in year 1 would be $120,000. Should the firm build the factory? Explain why or why not.

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Public Finance

ISBN: 9780073375748

1st Edition

Authors: Laurence S. Seidman

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Question Posted: Jun 10, 2024 02:21 AM

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S uppose a factory would be built in one year (year 0) and last only a year

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Public Finance

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