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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985
BuyFind

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985

Solutions

Chapter
Section
Chapter 9, Problem 2PA
Textbook Problem

A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years.

a. Should the firm undertake the project if the interest rate is 11 percent? 10 percent? 9 percent? 8 percent?

b. Can you figure out the exact cutoff for the interest rate between profitability and nonprofitability?

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Chapter 9 Solutions

Brief Principles of Macroeconomics (MindTap Course List)
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