Business, 30.07.2020 19:01 ScuddyG7164
Suppose that a new machine tool having a useful life of only one year cost $80,000 suppose also that the net profit resulting for buying the stores expected to be $16,000 if the firm finds it can borrow funds an interest rate of 15% the firm should invest or purchase the machine:
a) because the expected rate of return exceeds the interest rate not investor purchase the machine
b) because the expected rate of return exceeds the interest rate invest or purchase a machine
c) because interest rate exceeds the expected rate of return not invest or purchase a machine
d) because the interest rate exceeds the expected rate of return
Answers: 1
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Suppose that a new machine tool having a useful life of only one year cost $80,000 suppose also that...
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