Suppose a firm is considering the purchase of a machine which when used will increase its total revenues by $10,000 for the year. the machine costs $8,000 and has a useful life of one year. the interest rate is 20 percent. this investment should:
a. not be undertaken because the rate of return is 7 percent less than the interest rate
b. be undertaken because the rate of return is 5 percent greater than the interest rate
c. be undertaken because the rate of return is 2 percent greater than the interest rate
d. be undertaken because the rate of return is 7 percent greater than the interest rate
+5
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose a firm is considering the purchase of a machine which when used will increase its total revenues by $10,000 for the year. the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » Suppose a firm is considering the purchase of a machine which when used will increase its total revenues by $10,000 for the year. the machine costs $8,000 and has a useful life of one year. the interest rate is 20 percent. this investment should: a.