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4) Dunder Mifflin Paper Company is examining the purchase of a machine that will cost $50,000. The machine is expected to last 10 years and
4) Dunder Mifflin Paper Company is examining the purchase of a machine that will cost $50,000. The machine is expected to last 10 years and will have no salvage value. D Schrute, Assistant to the Regional Manager, mentioned that the firm's interest rate is 15%. Determine the expected retum and the risk (St. Dev.) associated with the purchase. Probability Annual Bene fits 9,000 0.3 ST2,000 0.5$10,500 3 0.4
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