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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 327 Weeks Ago, 5 Days Ago |
| Questions Answered: | 12843 |
| Tutorials Posted: | 12834 |
MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
u—n {I The Jonson Novelty Company is trying to decide whether to invest $140,000 today to purchase epedalized equipment that wodd be used to make a novelty product
The mductwould be fairly short lived (he'ng a novelty}, and the company emeds that itwould make profits $540,000 per year for the next three yea-s. After that the equipment would heworthless and no further sales at the produd: would he made. The appropriate discount rate forthis risky project is 19 percent. The net present value ofthis investmentis $:|. (Enterwurresponsemmdedto hm declinal places} The Jonson Novelty Company should 3- not mdte the investment
matte the investment —
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