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stealth61 [152]
2 years ago
11

Assume a machine that has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power,

taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. If the firm finds it can borrow funds at an interest rate of 10 percent, the firm should
Business
1 answer:
grigory [225]2 years ago
5 0

Purchase the machine because the expected rate of return exceeds the interest rate

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