Question: DO NOT USE EXCEL, WRITE THE MATH IN DETAILS WITH THE FORMULA. Urgent 5. Suppose we are asked to decide whether a new cement cycle

 DO NOT USE EXCEL, WRITE THE MATH IN DETAILS WITH THE

DO NOT USE EXCEL, WRITE THE MATH IN DETAILS WITH THE FORMULA.

Urgent 5. Suppose we are asked to decide whether a new cement cycle factory should be launched. We expect that the cash flows over the five-year life of the project will be USD 2,000 in the first two years, USD 4,000 in the next two, and USD 5,000 in the last year. It will cost about USD 12,000 to begin production. We use a 10 percent discount rate to evaluate new products. Should projects in different industries have the same discount rate? Provide detailed explanation. 3

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