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5. (10 marks) You own a machine that produces a computer part. It will take you one year to get it running and once complete

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5. (10 marks) You own a machine that produces a computer part. It will take you one year to get it running and once complete the machine generates $10000 per year. However, the machine will brcak down after 20 years of operation. Assume the risk-free rate is 3%. (i) An investor offers to buy the machine from you in one year for $175,000. Should you take it? Explain. (ii) Suppose in one year (before the first payment), the risk-free interest rate increases to 6% and the investor is only able to come up with $100000. What should you do

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