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If the interest rate is 8% per year, what decisions would you make based on the decision tree diagram in the figure below? (0.6) $200,000

If the interest rate is 8% per year, what decisions would you make based on the decision tree diagram in the figure below?

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(0.6) $200,000 profit per year for six years, starting at EOY 3 (0.4) Introduce New Product - $1.000.000 at EOY 2 Do Nothing $280.000 profit per year for six years, starting at EOY 3 $0 profit/yr. for 8 years Year 0

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