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Your company is condidering the following project. It costs $2000 today. It will produce $450 at the end of the first year and continues to
Your company is condidering the following project. It costs $2000 today. It will produce $450 at the end of the first year and continues to do so for the next 10 years. The project ends at the end of the 10th year. It will cost you $1500 to shut down the project at the end of the 10th year. the discount rate is 16%. Should you take the project?
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