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Author Question: Tom's Donuts can invest in a new espresso machine that costs $300 and will yield expected profits of ... (Read 748 times)

Metfan725

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on: Apr 19, 2019

Question 1

Tom's Donuts can invest in a new espresso machine that costs $300 and will yield expected profits of $200 each year for two years. What is the present discounted value of the expected profits from this investment if the interest rate is 5%?


◦ $185.93
◦ $276.64
◦ $371.89
◦ $380.96

Question 2

Tom's Donuts can invest in a new espresso machine that costs $300 and will yield expected profits of $200 each year for two years. At lower interest rates, the present discounted value of profits from the investment


◦ increases.
◦ decreases.
◦ is unchanged.
◦ is indeterminate from the given information.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Metfan725 on Apr 19, 2019

briezy

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Jonathan Nahmias

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Reply #2 on: Apr 16, 2020
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