Multiple Choice
A semiconductor firm is considering opening a new plant. The plant will generate profits of $100 million at the end of each of three years after the first year of production and then no profits after that. If the interest rate is 10%, what is the maximum cost (to the nearest million) the firm is willing to pay now for the plant?
A) $300 million
B) $249 million
C) $273 million
D) $100 million
Correct Answer:
Verified
Correct Answer:
Verified
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