Question
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 $ 100 . ?However, once? built, the machine will last forever and will require no maintenance. The machine can be built? immediately, but it will cost $ 1,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 9.5 % per? year, what should your buddy? do? What is your advice if the machine takes one year to? build? The NPV of the machine is ?$nothing .
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