At what interest rate would an investor be indifferent


A different ethanol processing facility costs $800,000 to construct but will instead last forever. Every year (starting the year after construction), it produces 10,000 barrels of ethanol and can charge a price of $4 per barrel. At what interest rate would an investor be indifferent between constructing the facility and simply keeping the money?

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Business Economics: At what interest rate would an investor be indifferent
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