You are trying to decide if you should build a factory or simply leave the money in

the bank collecting interest. It will cost $10M to build the factory and two years of

time. Assume the factory will run for 25 years after that and generate $1.5M per

year in profit each year. Assume a discount rate of 4%. Also assume that all of the

$10M building costs are spent on day-one of construction. Should you build the

factory or leave the money in the bank at a 3% interest rate?