The K-Nine dog food company is considering the purchase of additional canning equipment. They expect that adding the equipment will yield $200,000 at the end of the first year and $250,000 at the end of the second year and then nothing after that. At which of the following prices and interest rates would K-Nine buy the equipment?
a. $415,000 if the interest rate is 5%
b. $419,000 if the interest rate is 4%
c. K-Nine would buy the equipment in both cases.
d. K-Nine would not buy the equipment in either case.
c
Economics
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Refer to the figure above. What is the producer surplus in the market?
A) $20 B) $40 C) $60 D) $80
Economics
The United States can be called a net debtor nation. This means that
A) the value of U.S. assets held abroad is worth less than the value of foreign assets held in the U.S. B) the U.S. government owes more money than it takes in. C) the value of the U.S. currency is less than the value of currencies for our main trading partners. D) the U.S. manufactures more goods abroad than it manufactures domestically.
Economics