Question
Your buddy in mechanical engineering has invested a machine. It takes one year for the machine to manufacture $400 worth of goods. Once built, the
Your buddy in mechanical engineering has invested a machine. It takes one year for the machine to manufacture $400 worth of goods. Once built, the machine will last forever and will require no maintenance. The machine can be built immediately and will cost $4,000 to build.
If the interest rate is 3.5%, the NPV of the machine is $__________. (Round to the nearest dollar.)
Your buddy in mechanical engineering has invested a machine. It takes one year for the machine to manufacture $900 worth of goods. Once built, the machine will last forever and will require no maintenance. The machine will take one year to build and will cost $9,000 today. If the interest rate is 11%, the NPV of the machine is $__________ (Round to the nearest dollar.)
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Better Than Alpha Three Steps To Capturing Excess Returns In A Changing World
Authors: Christopher M. Schelling
1st Edition
1264257651,126425766X
