Business
Business, 04.08.2020 17:01, kingethan08

You are thinking of building a new machine that will sve you 2,000 in the first year the machine will then begin to wear out so that the savings decline at a rate of 4% per year forever. What is the present value of the savings if the interest rate is 5% per year? (Hint: this is a growing perpetuity.)

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