Consider receiving a government subsidy that reduces your production costs by $10,000 per year for the next

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Consider receiving a government subsidy that reduces your production costs by $10,000 per year for the next 30 years (starting in year 1). Which of the following is closest to how much this improvement is worth to you (in year zero dollars) if your opportunity cost of capital is given by a discount rate of 5%?

130000

140000

160000

150000

Posted Date: Nov 23, 2021 12:30 AM

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Consider receiving a government subsidy that reduces your production costs by $10,000 per year for the next

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As per the data we are getting a subsidy benifit in cost of production by 10000 every year ti... View the full answer

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