Imagine that you are a financial investor and Boyan Slat of Ocean Clean-up. Comes to you for an investment in his project to filter plastic remains from the world oceans. He presents that his project only requires $20 million in funding; that it will help to reduce damage to the delicate eco-systems of the world oceans and that the reduction of this damage would avoid an otherwise necessary clean-up cost $2 billion in expenses. Therefore, he argues, the investment offers a return of 1000%. Would you invest? Why/why not?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 28P: Friedman Company is considering installing a new IT system. The cost of the new system is estimated...
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Imagine that you are a financial investor and Boyan Slat of Ocean Clean-up. Comes to you for an investment in his project to filter plastic remains from the world oceans. He presents that his project only requires $20 million in funding; that it will help to reduce damage to the delicate eco-systems of the world oceans and that the reduction of this damage would avoid an otherwise necessary clean-up cost $2 billion in expenses. Therefore, he argues, the investment offers a return of 1000%.

Would you invest? Why/why not?

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