Suppose that a new machine tool having a usetul ife of onty one year costs $80.000 Suppose, atso, that the net additional revenue resulting thom buying this tool isexpected to be$12.000. The expected rote of return on this tool isMultiple Choice40 percent60 percent30 percent12 percent

The cost of purchasing the machine is: $ 80,000 The increase in revenue due to that machine is:…

Suppose that a new machine tool having a usetul ife of only one year costs $80.000 Suppose, also, that the net additionel revenue resuting trom buyng th ol is expected to be $12.000. The expected rate of return on this tool is Multiple Choice 40 percent 60 percent 30 percent 12 percent

Suppose that a new machine tool having a usetul ife of only one year costs $80.000 Suppose, also, that the net additionel revenue resuting trom buyng th ol is expected to be $12.000. The expected rate of return on this tool is Multiple Choice 40 percent 60 percent 30 percent 12 percent

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 usetul ife of onty one year costs $80.000 Suppose, atso, that the net additional revenue resulting thom buying this tool isexpected to be
$12.000. The expected rote of return on this tool is
Multiple Choice
40 percent
60 percent
30 percent
12 percent

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