cialty

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...
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a. You will be opening a bakery. You decided to buy a big oven machine that costs P222,500 from a
specialty company the interest rate is 10 percent and the annual income from the investment is
P180,000. Do you think you got a good deal on the machine you bought? Why or why not?
b. What determines the equilibrium rate of interest?
Transcribed Image Text:a. You will be opening a bakery. You decided to buy a big oven machine that costs P222,500 from a specialty company the interest rate is 10 percent and the annual income from the investment is P180,000. Do you think you got a good deal on the machine you bought? Why or why not? b. What determines the equilibrium rate of interest?
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