Multiple Choice
Exhibit 13-6

-In Exhibit 13-6, assume that sewing machines last indefinitely, operating expenses are negligible and output is expected to be constant in the future. If sewing machines can be purchased for $720 each and the market interest rate is 10%, how many sewing machines should the firm purchase?
A) one
B) two
C) three
D) four
E) five
Correct Answer:
Verified
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