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GE Marine Systems is planning to supply a Japan- ese shipbuilder with aero-derivative gas turbines to power 11 DD-class destroyers for the Japanese Self-Defense Force. The buyer can pay the total contract price of $2,100,000 two years from now (when the turbines will be needed) or an equivalent amount now. At an interest rate of 15% per year, what is the equivalent amount now?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91719997

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