Consider a one-year project that costs $300,000, provides an income of $70,000 a year for 5 years and costs$30,000 to dispose of at the very end of the fifth year. Assume that the first payment comes at the start of the year after the project is undertaken. Should the project be undertaken at a 2% discount rate?

Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?