XYZ Corporation is deciding whether to spend $500,000 to open a new manufacturing plant or invest the $500,000 in bonds earning 5% per year. The expected profit on the new plant is $50,000 per year for the next 15 years. Which decision is the most profitable for the firm? Explain your answer.

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The Answer of XYZ Corporation is deciding whether to spend $500,000 to open a new manufacturing plant or invest the $500,000 in bonds earning 5% per year. The expected profit on the new plant is $50,000 per year for the next 15 years. Which decision is the most profitable for the firm? Explain your answer.

XYZ Corporation Is Deciding Whether to Spend $500,000 to Open