Question: Amazon is considering adding a fleet of drones to its company. These drones cost $2,000 each. Each drone is expected to generate an annual

Amazon is considering adding a fleet of drones to its company. These drones cost $2,000 each. Each drone is Should Amazon invest in these drones?

Amazon is considering adding a fleet of drones to its company. These drones cost $2,000 each. Each drone is expected to generate an annual revenue of $800 and has a useful life of 3 years. After 3 years of operation, it has negligible salvage value. What is the external rate of return for each drone? Assume Amazon's MARR is 12%. Should Amazon invest in these drones?

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