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23 September, 23:06

Your company, "when life gives you lemons inc.", is thinking about expanding the number of stands that it currently has from 15 to 20. it will cost $200,000 today to complete the expansion. the expansion will permanently increase profits by $15,000 every year starting in one year's time. if the interest rate is 8% what is the pdv of the expansion project. should the company do it?

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  1. 24 September, 00:05
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    No. The company will probably go bankrupt.
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