If the cost of capital increased to 25%, does the firm invest in the printer?
a. Yes because the NPV>0
b. Yes because the NPV=0
c. Need information on the marginal benefits and costs
d. No because the NPV<0
a
Economics
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The principal-agent problem refers to the fact that firms must
A) choose between economic efficiency and technological efficiency. B) choose between a managerial and an incentive system. C) devise incentives to get employees to work in the best interest of the firm's owners. D) choose between operating as a partnership or corporation.
Economics
Suppose Chip's Chips produces bags of potato chips. An example of a fixed cost for this company would be:
A. a potato peeling machine. B. the factory building. C. the deep fryer. D. All of these are examples of fixed costs.
Economics