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S E31: Investment - Upfront costs for future gains
Think Like An Economist
Will Owen Buy a Bigger Still?
Owen says he was planning on borrowing the hundred thousand uros neded for this bigger still. So how do business people like owen go about deciding whether they should make this investment? We have a formula that works out the present value of the future payment owen will get from the amount of gin this still can make over the still's lifetime.
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