Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $92,000. The expected rate of return on this tool is

Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $92,000. The expected rate of return on this tool is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that a new machine tool having a useful life
of only one year costs $80,000. Suppose, also, that
the net additional revenue resulting from buying this
tool is expected to be $92,000. The expected rate of
return on this tool is

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