Econ 1102: Principles of Macroeconomics

DVD $10 5 1,500 100 CD $5 10 1,000 50 Question . 5. A company has an investment project that would cost $100,000 today and yield a payoff of $200,000 in seven years. (4 Pts.) Should the firm undertake the project if the interest rate is 15%, 10%, 5%? (Note: Need to explain why undertake or why not and show details of calculation.) (3 pts.) ................
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