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Business, 23.10.2019 01:00 2020IRodriguez385

Suppose a handbill publisher can buy a new duplicating machine for $500 and the duplicator has a 1-year life. the machine is expected to contribute $550 to the year’s net revenue. what is the expected rate of return? if the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? explain.

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Suppose a handbill publisher can buy a new duplicating machine for $500 and the duplicator has a 1-y...
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