Suppose a new cost-saving device will forever generate $1,000 net savings per year to a firm. The device costs $10,000. Using the Internal Rate of Return approach, will the firm make the investment?
A) definitely
B) definitely not
C) if the interest rate exceeds 10%
D) if the interest rate is less than 10%
D
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The figure illustrates the demand for magazines. Newsagents will maximize their total revenue when they ________
A) sell 375 magazines a day B) sell as many magazines as they can C) charge $2.50 a magazine D) sell 750 magazines a day
An autonomous expenditure is one that does not depend on:
A) government policy B) the automobile sector C) interest rates D) GDP
Restricting the supply of labor in order to increase the wage
a. is a tactic used by both craft and industrial unions b. is a tactic more likely to be used by the American Medical Association (AMA) than the United Auto Workers (UAW) c. is a tactic more likely to be used by the UAW than the AMA d. is a tactic used solely by professional groups such as lawyers e. has less effect on the wage than direct negotiation does
The actual control of the Federal Reserve System resides in the
a. Congress of the United States. b. member banks. c. Senate Banking Committee. d. Board of Governors.