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Starbuck Inc., an ore mining company, is debating a new contract. The contract would result in profits of $ 5 , 0 0 0 per

Starbuck Inc., an ore mining company, is debating a new contract. The contract would result in profits of $5,000 per year, for 10 years. The startup costs for the project would be $35,000.
a. If the market interest rate is 8%, should Starbuck Inc. accept the contract? Why?
b. If the market interest is 6%, should Starbuck Inc. accept the contract? Why?

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