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A project has an expense of NOK 90 million today and is expected to generate a profit of NOK 200 million in 20 years. Set

A project has an expense of NOK 90 million today and is expected to generate a profit of NOK 200 million in 20 years. Set up the expression for the present value of the project. Use the table below to find out if projects are profitable for (i) an interest rate of 3%, (ii) an interest rate of 5% b) A preventive health measure requires an investment of NOK 100 million today, but is expected to provide an annual gain of NOK 5 million in the foreseeable future. At what interest rates are the project profitable?

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Rent A 1% 3% 5% 10% 15% 1 99,01 97,09 95,24 90,91 86,96 5 95,15 86,26 78,35 62.09 49,72 Ar= year 10 90,53 74,41 61,39 38,55 24,72 86,13 64,19 48,1 23,94 12,29 20 81,95 55,37 37,69 14,86 6,11 30 74,19 41,2 23,14 5,73 1,51 The table shows the present value of 100 for different combinations of the number of years until the amount arrives and the interest rate

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