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corie corie
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7 years ago
Ed's Electronic Devices has an asset beta of 0.6.  The market rate of return is 12% and the risk-free rate of return is 2%.  Ed is considering updating his production technology.  If he does so, he expects the cash streams indicated in the table below.  Given this information, should Ed update his production technology?

Year   Cashflow   Present Value
0   -$100,000   
1   $25,000   
2   $25,000   
3   $25,000   
4   $25,000   
5   $25,000   
6   $25,000   
Total
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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CanihCanih
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7 years ago
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corie Author
wrote...

7 years ago
Good timing, thanks!
erimis
wrote...

Yesterday
You make an excellent tutor!
sleinhi
wrote...

2 hours ago
Correct Slight Smile TY
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