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Author Question: A firm is considering the purchase of a piece of equipment that will add 200 per year to the firm's ... (Read 46 times)

Metfan725

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  • Posts: 552
on: Jun 30, 2018
A firm is considering the purchase of a piece of equipment that will add 200 per year to the firm's revenue forever. If the interest rate is 10 percent, the firm will purchase the equipment so long as it costs less than
 a. 1,000
  b. 2,000
  c. 4,000
  d. 6,000
  e. 8,000

Question 2

From the U.S. perspective, a drop in the price of foreign exchange means that
 a. fewer U.S. dollars are needed to purchase foreign currency
  b. more U.S. dollars are needed to purchase foreign currency
  c. worldwide, imports will become more expensive
  d. worldwide, exports will become cheaper
  e. transaction costs on international markets will decrease


Hikerman221

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


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