Assume that a medical device has a useful life of 10 years, and it loses its real value at a constant rate (i.e. 1/10 of the original value per year). At a 6% interest rate, and including depreciation in the calculation, over a 7 year period a $80,000 investment must earn at least approximately ____________ to be economically viable.

Assume that a medical device has a useful life of 10 years, and it loses its real value at a constant rate (i.e. 1/10 of the original value per year). At a 6% interest rate, and including depreciation in the calculation, over a 7 year period a $80,000 investment must earn at least approximately ____________ to be economically viable.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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