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Please help 4. Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It
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4.
Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $300. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $3,000 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 10.0% per year, what should your friend do? The NPV of the machine is $ (Round to the nearest dollar.)Step by Step Solution
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