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Assume that the real interest rate is 10%. A firm can invest in a piece of machinery that will provide a profit stream of $777.77
Assume that the real interest rate is 10%. A firm can invest in a piece of machinery that will provide a profit stream of $777.77 at the end of year 1, $1,865.35 at the end of year 2, $3,586.27 at the end of year 3, $2,369.13 at the end of year 4, and $591.31 at the end of year 5.
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