Business, 19.11.2019 20:31 mallorywoods8

Assume a machine that has a useful life of only one year costs $2,000. assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. if the firm finds it can borrow funds at an interest rate of 10 percent, the firm should
a) not purchase the machine, because the expected role of return exceeds the interest rate)
b) not purchase the machine, because the interest rate exceeds the expected of retum
c) purchase the machine because the expected rate of retur exceeds the interest rate)
d) purchase the machine because the interest rate exceeds the expected rate of return

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Assume a machine that has a useful life of only one year costs $2,000. assume, also, that net of suc...

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