Question: Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year

Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture 70. However, once built, the machine will last forever and will require no maintenance. The machine takes one year to build and it will cost $1,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 6% per year, what should your buddy do? b. You convince your friend to improve the machine so that the amount of produced money will increase every year by 1% ? c.

What is the IRR of the machine in b

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