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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 5 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Acme Landfill Company is considering the purchase of 10 better trash collection trucks. Each truck costs $50,000 and will last 7 years. The firm estimates that the purchase will increase its annual revenues by $100,000 per year for as long as the trucks last. If the real interest rate is 10 percent, should the firm buy the 10 trucks? Would your answer change if the real interest rate fell to 8 percent?
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