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Business, 19.03.2021 04:40 davidt64

Suppose Pandora is deciding how to dispose of some hazardous waste. She can contain it safely, at a cost of $175, or bury it in the local landfill. If she chooses the second option, in ten years' time the stuff will have seeped out enough to permanently ruin the vineyard of Bacchus, who lives next door to the landfill. The vineyard has a value to him in ten years of $450 (i. e., he'd sell it then for $450.) This is the only damage the hazardous waste will ever do. Assume there is no inflation. 1. What is the Present Value of $450 in ten years at a discount rate of 10%

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Suppose Pandora is deciding how to dispose of some hazardous waste. She can contain it safely, at a...
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