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Answer on Economics of Enterprise Question for mesfin

Question #20691
The firm is required to install pollution-control equipment.- will increase value of the firm
Expert's answer
the installing of pollution control equipment would decrease the value of the firm, because the firm is not able to recapture its costs because its productivity has not increased commensurately or because the technology has already become obsolete, it has invested in a negative NPV investment in technology.

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