Suppose a manager is deciding whether or not to purchase a piece of equipment to make an input internally and has completed the majority of the net present value (NPV)calculations. The manager has correctly calculated the NPV to be equal to: NPV = ($1.082 × Q)- $200,000, where Q is the annual quantity of the input the firm needs. If the firm needs 175,000 units of the input each year, the manager_______ buy the equipment because the NPV is ________ .
A)should not; negative
B)should; negative
C)should; positive
D)should not; positive

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The Answer of Suppose a manager is deciding whether or not to purchase a piece of equipment to make an input internally and has completed the majority of the net present value (NPV)calculations. The manager has correctly calculated the NPV to be equal to: NPV = ($1.082 × Q)- $200,000, where Q is the annual quantity of the input the firm needs. If the firm needs 175,000 units of the input each year, the manager_______ buy the equipment because the NPV is ________ .
A)should not; negative
B)should; negative
C)should; positive
D)should not; positive

Suppose a Manager Is Deciding Whether or Not to Purchase