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A)Suppose r = 0.06. Should General Motors spend $100 million to build a factory that will yield $200 million in ten years?PROVIDE THE ANSWER WITH

A)Suppose r = 0.06.

Should General Motors spend $100 million to build a factory that will yield $200 million in ten years?PROVIDE THE ANSWER WITH THE FORMULA.

ANSWER : Solution:

B)Instead, suppose r = 0.09.

Should General Motors spend $100 million to build a factory that will yield $200 million in ten years?

ANSWER : Solution

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