Eclipse Corp. is considering taking over a contaminated building site on a former mining site....
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Eclipse Corp. is considering taking over a contaminated building site on a former mining site. In exchange for $ from the mining company now, Eclipse will invest $ per year for the following years to clean up the site. Once the site is clean at the end of year it will receive a further $ from the mining company. Over the following years, Eclipse will invest $ per year to construct a racetrack on the site. The new track will last forever and net $ per year for Eclipse from gambling revenues starting at the end of year If Eclipse's MARR is what is the exact ERR for this project? Should Eclipse proceed with the project?
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