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Consider two projects. The first project pays benefits of $90 today and nothing else. The second project pays nothing today, nothing one year from now,
Consider two projects. The first project pays benefits of $90 today and nothing else. The second project pays nothing today, nothing one year from now, but $100 two years from now. Both project cost $40 today and nothing else. Suppose that the discount rate is 0%
a) What is the present value of the second project?
b) Which project should be implemented?
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