Question: the correct answer is B, i just need to know the steps to get there. i will upvote. 11. Suppose that you have one robot

the correct answer is B, i just need to know the steps to get there. i will upvote.
11. Suppose that you have one robot working for you. The robot can only work on one task at a time. Currently, it is working on project A that generates $1,000 annual cashflows forever. You have an option to make it work on project B that will generate $1,500 annual cashflows forever. The only caveat is that it needs time to learn the new task and it will generate the first cashflow in 4 years. At a discount rate of 8%, what should you do? a) Have the robot keep working on project A. b) Make the robot switch to project B. c) You are indifferent. d) Let the robot rest. c) Not enough information
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
