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Techie, Inc. may invest $5 million in a new Star Communicator project. Annual production costs and revenues are projected to be $2 million and $1.5
Techie, Inc. may invest $5 million in a new Star Communicator project. Annual production costs and revenues are projected to be $2 million and $1.5 million, with each growing at 2.0% and 4.0%, respectively. At an interest rate of 5.5%, what is the approximate investment year that will maximize value?
A) Year 20 B) Year 15 C) Year 10 D) Year 5 Answer: A
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