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Value of a taxi license

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Reference no: EM131556382

Value of a taxi license

Total costs of operation are $40,000 per year plus costs of license

total revenue is $60,000 per year

(20,000 per year implicit cost of license ownership)

Find the amount you would pay today to recieve $20000 per year forever when the interest rate is 6%

Reference no: EM131556382

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