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 $ 900. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $ 9,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 13.0 % per year, what should your buddy do? The NPV of the machine is $ nothing. (Round to the nearest dollar.)
The NPV of the machine is
$____
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