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RainMan Inc is in the business of producing rain upon request. They must decide between two investment projects: a new airplane for seeding rain clouds or a new weather control machine built by Dr. Nutzbaum. The discount rate for the new airplane is 9%, while the discount rate for the weather machine is 39% (it happens to have higher market risk). Which investment should the company select and why? (Assume a 0% inflation rate.)
Year Airplane Weather Machine
0 -900 -900
1 500 550
2 600 600
3 685
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