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You are considering investing in an abatement technology that costs $500,000 today. Instead of increasing production, you are considering selling carbon permits - the abatement
You are considering investing in an abatement technology that costs $500,000 today. Instead of increasing production, you are considering selling carbon permits - the abatement technology would you allow you to sell an extra 10,000 carbon permits per year at an expected price of $13 each from t=1 to t=5. The abatement technology will become useless just after t=5. Ignoring taxes, what is the IRR of this project
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