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DO NOT answer #1 I have the answer already (130%) Please provide help for questions labeled 2,4,5 Thank you so much 1. Suppose the Price
DO NOT answer #1 I have the answer already (130%) Please provide help for questions labeled 2,4,5 Thank you so much
1. Suppose the Price of a new machine is $10,000. Further suppose that the ENRP=$13,000. What is the expected rate of profit on this investment? 2. What is the expected rate of profit if The government provides an ITC of 10%. Please answer the next 3 questions based on the information provided in the slide above. 4. Suppose the interest rate falls to zero. Now which of the following statements is correct? A. The present value of the Expected Net Revenue stream equals the AC of the machine and hence the investment is feasible. B. The present value of the Expected Net Revenue stream is less than the AC of the machine and hence the investment is not feasible. C. The expected rate of profit on this investment exceeds the interest rate and hence this investment is feasible. D. None of the above are correct 5. If r=0 and ITC =0, then the expected rate of profit on this investment is equal to %Step by Step Solution
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