Author Question: When the marginal rate of return expected from a purchase of equipment is less than the market ... (Read 47 times)

jwb375 · **on:** Jun 30, 2018

When the marginal rate of return expected from a purchase of equipment is less than the market interest rate, then the firm should
a. seek government assistance in decreasing the market interest rate
b. inform stockholders that the company can expect increased earnings from the purchase
c. either purchase or not purchase the equipment depending on the marginal resource cost of the equipment
d. purchase the equipment
e. not purchase the equipment

Question 2

The value of a country's exports is listed in its balance of payments account as a(n)
a. credit
b. debit
c. payment
d. investment
e. unilateral transfer