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A project costs 10 this year, has a benefit of 7.5 this year, and has a benefit of 10 next year. (a) Assuming that the
A project costs 10 this year, has a benefit of 7.5 this year, and has a benefit of 10 next year. (a) Assuming that the interest rate is r = 1, what is the present value (sum of the discounted benefits minus costs) of the project? (b) For what value of interest rate r, the present value of the project will be exactly equal to zero
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