You have a project costing $1.50 that will produce two widgets, one each the first and second

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You have a project costing $1.50 that will produce two widgets, one each the first and second years after project completion. Widgets today cost $0.80 each, with the price growing at 2% per year. The effective annual interest rate is 5%. When will you invest? What is the value today of the project?
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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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