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Category > Accounting Posted 14 Jun 2017 My Price 4.00

Suppose a handbill publisher can buy a new duplicating machine for $500

KEY QUESTION Suppose a handbill publisher can buy a new duplicating machine for $500 and the duplicator has a 1-year life. The machine is expected to contribute $550 to the year’s net revenue. What is the expected rate of return? If the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? Explain.

 

Answers

Alpha Geek
(8)
Status NEW Posted 14 Jun 2017 07:06 AM My Price 4.00

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Attachments

file 1497426473-1901900_1_636329591282228537_Rate-of-return.xlsx preview (119 words )
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