A wind turbine engineering firm has both the experience and an undeveloped plan for a new and more efficient design. A manufacture has offered to pay the firm $2,000,000 for a working prototype, with complete documentation, 3 years from today. The turbine design irm wants to earn 22% per year on its money. How much can the turbine design firm afford to invest, expressed as if its entire nvestment were to take place today?

A wind turbine engineering firm has both the experience and an undeveloped plan for a new and more efficient design. A manufacture has offered to pay the firm $2,000,000 for a working prototype, with complete documentation, 3 years from today. The turbine design irm wants to earn 22% per year on its money. How much can the turbine design firm afford to invest, expressed as if its entire nvestment were to take place today?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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