BuyFind

Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406
BuyFind

Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406

Solutions

Chapter
Section
Chapter 16.1, Problem 4ST
Textbook Problem

A business firm is thinking of buying a capital good, which will earn $2,000 a year for the next four years and cost $7,000. The interest rate is 8 percent. Should the firm buy the capital good? Explain your answer.

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