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Business, 18.02.2020 20:57 hadwell34

RainMan Inc. is in the business of producing rain upon request. They must decide between two investment projects: a new airplane for seeding rain clouds or a new weather control machine built by Dr. Nutzbaum. The discount rate for the new airplane is 9 percent, while the discount rate for the weather machine is 39 percent (it happens to have higher market risk). Which investment should the company select and why?Year Airplane Weather Machine0 -900 -9001 500 5502 600 6003 685A) What machine should be purchased?B) What would the cost for the airplane be so that you were indifferent between the airplane and the weather machine?

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