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A project costs $2000 to build in the present period and yields a $5000 payout after 10 periods (no payout until period 10). The interest
A project costs $2000 to build in the present period and yields a $5000 payout after 10 periods (no payout until period 10). The interest rate is 10%. Would it pay to invest in this project? What about if the payout came after 5 years? Explain.
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