The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of
return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year Income from Operations Net Cash Flow 1 $20,000 $95,000 2 20,000 95,000 3 20,000 95,000 4 20,000 95,000 5 20,000 95,000 The cash payback period for this investment is: Group of answer choices 4 years
The net present value for this investment isa.$19,875b.$(19,875)c.$20,140d.$(20,140)
The net present value for this investment isa.$19,875b.$(19,875)c.$20,140d.$(20,140)
1 answer:
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Answer:
correct option is c. 5 utility units
Explanation:
given data
receives 20 units = consuming 2 candy
receives 25 units = consuming 3 candy
to find out
Marginal utility
solution
we know that Marginal utility of 3rd candy bar is express as
Marginal utility = .........1
put here value
Marginal utility =
Marginal utility = 5 unit
so correct option is c. 5 utility units