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Problem 1 - The construction of a small plant will cost $1M at time 0, $500K in year 1, $500K in year 2. It will be completed

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The same is solved as shown

Cash flow Diagram for the construction plan. 11 12 13 14 15 16 17 loan A = 10000/y. @ í = 10% = 0.1 A=$15000 lys $500DORSO0 0

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