ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 7A, Problem 15P
To determine
The calculation of Interest rate.
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Consider a training program that will result in a worker receiving a one time bonus of $2,900 two years from now. The cost of the training program is $2,000. What is the rate of return on this investment?
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10%
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20%
Burnaby Circuit Boards is thinking of buying a new wave soldering machine that is anticipated to save them $20,000.00 a year through increases efficiency and reduced labour cost. The machine is expected to have a life expectancy of ten years and the company generally expects to get a ten percent return on capital. How much can Burnaby afford to pay for the machine?
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