Potential solutions to sell a high-quality used car include

OnWheels and Speedstar are the only two manufacturers of sports cars. The cars manufactured by these companies are considered to be close substitutes, but are not identical. How should each firm determine its price in this case?

What will be an ideal response?

If the cost of capital decreased to 1%, does the firm invest in the new technology?

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