Multiple Choice
Exhibit 13-5
Exhibit 13-5 shows data on the various dough-mixing machines that a donut shop is considering buying.Assume that any dough-mixing machine is expected to last indefinitely, that operating expenses are negligible, and that the price of donuts is expected to remain constant in the future.The marginal rate of return on the machine with the three-quart bowl is
A) 1 percent
B) 5 percent
C) 10 percent
D) 20 percent
E) 55 percent
Correct Answer:
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