Business, 12.02.2020 04:43 702580

You are thinking of building a new machine that will save your company $1,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 2% per year forever. What is the present value of the savings if the interest rate is 5% per year? (Hint: this is a growing perpetuity.

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You are thinking of building a new machine that will save your company $1,000 in the first year. The...

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