A certain machine will last one year, will produce $120 in income (received one year later), and will cost $100 . The lowest interest rate at which this investment will be unprofitable is
a. 10 percent.
b. 11 percent.
c. 19 percent.
d. 22 percent.
d
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How do you know that firms benefit society?
A. Entrepreneurs start businesses. B. Customers voluntarily pay for their products. C. Firms pay taxes and employ people. D. Firms earn profits and produce goods.
Full employment is estimated to occur at an unemployment rate
A. Between 10 and 12 percent. B. Equal to 0 percent. C. Between 1 and 2 percent. D. Between 4 and 6 percent.
The mainstream view of macro instability is that:
A. changes in the money supply directly cause changes in aggregate demand and thus cause changes in real GDP. B. changes in investment shift the aggregate demand curve and thus cause changes in real GDP. C. bursts of innovation put the economy on an unsustainable growth path, eventually producing recession. D. changes in technology and resource availability are the two main sources of fluctuations of real GDP.
If all information is reflected in current prices, the market is
A) resilient. B) deep. C) primary. D) efficient.