What is the maximum price the firm is willing to pay

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A firm is considering whether to purchase a fork lift. With no fork lift, the firm makes $5000 profit every period(except the first period, in which they make $5500 - w of profit, where w is the price of the fork lift).They except that the fork lift will last forever. The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?

Reference no: EM13160514

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