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A Firm Is Considering the Purchase of a Piece of Equipment

Question 159

Multiple Choice

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

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