An investment of 1 million dollars per year will avoid 1.5 billion dollars of damage from global warming in 80 years. At a discount rate of 6%, is the investment a good idea? (Hint: Assume you make 80 $1 million dollar investments, with the first one a year from now and the last one in the 80th year).

An investment of 1 million dollars per year will avoid 1.5 billion dollars of damage from global warming in 80 years. At a discount rate of 6%, is the investment a good idea? (Hint: Assume you make 80 $1 million dollar investments, with the first one a year from now and the last one in the 80th year).

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.4IP

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