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Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year
Your buddy 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
$ 200$200.
However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost
$ 2 comma 000$2,000
to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is
15.0 %15.0%
per year, what should your buddy do?
The NPV of the machine is
$nothing.
(Round to the nearest dollar.)
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