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Consider a project that costs $200,000 to build, provides an income of $75,000 a year for five years starting in year 1, and costs $200,000
Consider a project that costs $200,000 to build, provides an income of $75,000 a year for five years starting in year 1, and costs $200,000 to dispose of at the very end of the fifth year. Assume that the first payment comes at the start of the year after the project is undertaken. Should the project be pursued at a 0% discount rate? How about 2%? 5%? 10%?
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