Twinbeard!

Managerial Economics Michael Baye Solutions -

\[P = 25\] A company is considering investing in a new project. The project requires an initial investment of \(100,000 and is expected to generate cash flows of \) 20,000 per year for 5 years.

where \(Q\) is the quantity produced.

\[MR = 100 - 4P = 0\]

\[10 + 4Q = 20\]