9- The manufacturer of a superconducting magnetic energy storage system can buy a new equipment for X dollars now; or they can buy it for 7,000,000 dollars after 3 years (then- current money or future money). If the inflation rate is 10% and the real interest rate is 5% per year, for what maximum value of X (PW) should they prefer to buy the system now? a) 4,543,098 b) O 5,259,204 c) O 8,048,375 6,046,863 e) 4,663,174

9- The manufacturer of a superconducting magnetic energy storage system can buy a new equipment for X dollars now; or they can buy it for 7,000,000 dollars after 3 years (then- current money or future money). If the inflation rate is 10% and the real interest rate is 5% per year, for what maximum value of X (PW) should they prefer to buy the system now? a) 4,543,098 b) O 5,259,204 c) O 8,048,375 6,046,863 e) 4,663,174

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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