Techie, Inc. may invest $5 million in a new Star Communicator project. Annual production costs and revenues are projected to be $2 million and $1.5 million, with each growing at 2.0% and 4.0%, respectively. At an interest rate of 5.5%, what is the approximate investment year that will maximize value?
A) Year 20
B) Year 15
C) Year 10
D) Year 5
Answer: A
B) Year 15
C) Year 10
D) Year 5
Answer: A
