Proposed project make sense at a discount rate

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Suppose Mayor Emanuel proposes a project that will cost $200,000 today, $100,000 next year and 15,000 to dispose of it in ten years when the project is completed. Once finished three years from today, it is expected to generate a net income of 40,000 per year for the next 10 years. Does the proposed project make sense at a discount rate of 0%? How about 2%, or 6%?

Reference no: EM13998969

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