A Semiconductor Firm Is Considering Opening a New Plant

question 9

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

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Definitions:

Thailand

A country in Southeast Asia known for its tropical beaches, opulent royal palaces, ancient ruins, and ornate temples displaying figures of Buddha.

Taiwan

An island in East Asia, known for its vibrant democracy, advanced technology industry, and rich cultural heritage.

Low Self-Esteem

The feeling of having little self-worth or value, often reflecting a negative self-assessment or view of oneself.

High Rates

In various contexts, high rates can refer to the increased frequency or occurrence of a specific event or characteristic.