Question
Assume that an investment project costs $50,000 at Year 0 and another $50,000 at Year 1, but creates a payoff of $50,000 at Year 2,
Assume that an investment project costs $50,000 at Year 0 and another $50,000 at Year 1, but creates a payoff of $50,000 at Year 2, and a payoff of $60,000 at Year 3.
a. Should you take the project if the interest rate is 9%?
b. What if the interest rate is 3%?
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Populists Plungers And Progressives
Authors: Cedric B. Cowing
1st Edition
0691621993, 978-0691621999
