Author Question: A firm is considering the purchase of a piece of equipment that will add 200 per year to the firm's ... (Read 83 times)

Metfan725

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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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Answer to Question 1

B

Answer to Question 2

A



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