A machine will generate after tax revenues of $1331 at the end of each year for 3 years, after which it will be worthless. (Its scrap value will only cover the cost of its removal). The interest rate available to the firm on risk-free bank accounts or bonds is 10 percent. The machine is a worthwhile investment if its purchase price is less than
a) $3,993.00
b) $4,846.17
c) $3,310.00
d) $4,392.30
e) $3,630.00
c) $3,310.00
Economics
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The real balances effect suggests that
A. when prices are higher, you buy fewer because the marginal utility of a good is diminishing. B. when prices are higher, you buy more. C. when prices are higher, your buying power is less, so you buy less. D. when prices are higher, you buy less of what you originally wanted and use something else instead.
Economics
The Federal Reserve System functions as America's
a. tax collector. b. stock and bond market. c. savings bank. d. central bank.
Economics
If $1 is worth 10 yen, then 1 yen is worth:
A. $1.00. B. $0.01. C. $1.10. D. $0.10.
Economics
Explain the costs and benefits of a single currency
What will be an ideal response?
Economics