Your friend in mechanical engineering has invented a money machine. The main drawback of the...
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Your friend 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 friend wants to know if he should invest the money to construct it. If the interest rate is 13.5% per year, what should your friend do? The NPV of the machine is $. (Round to the nearest dollar.)
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Your friend 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 friend wants to know if he should invest the money to construct it. If the interest rate is 13.5% per year, what should your friend do? The NPV of the machine is $. (Round to the nearest dollar.) 