You are offered a device that uses machine learning to improve performance. You expect it to produce monthly cash flows for you as follows: $ 10K, $40K, $70K, $100K. After 4 months, it will be obsolete and useless ( but good news...no disposal cost). Your discount rate is 12% nominal annual. Neglecting tax and depreciation, what would you pay for this device, in $K? (N dollar sign or comma, so $15,500 would be 15.5; $100,000 would be 100.)

You are offered a device that uses machine learning to improve performance. You expect it to produce monthly cash flows for you as follows: $ 10K, $40K, $70K, $100K. After 4 months, it will be obsolete and useless ( but good news...no disposal cost). Your discount rate is 12% nominal annual. Neglecting tax and depreciation, what would you pay for this device, in $K? (N dollar sign or comma, so $15,500 would be 15.5; $100,000 would be 100.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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