Which pollution-control program should ecofriend select

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Question - EcoFriend Ltd must invest in a pollution-control program. Two programs available to EcoFriend: (a) an all-at-once program that will be immediately funded and implemented, and (b) a gradual program that will be phased in over the next three years. The immediate program will cost $5 million, whereas the phase-in program will cost $1 million today and $2 million per year for the following three years. If the cost of capital for EcoFriend is 15%, which pollution-control program should EcoFriend select?

Reference no: EM133146292

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