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I only need the answer to question 4 here 1. Suppose the Price of a new machine is $10,000. Further suppose that the ENRP=$13,000 begin{tabular}{ccccc}
I only need the answer to question 4 here
1. Suppose the Price of a new machine is $10,000. Further suppose that the ENRP=$13,000 \begin{tabular}{ccccc} 6,000 & 6,000 & 5,000 & 8,000 & 7,000 \\ \hline Year 1 & 2 & 3 & 4 & 5 \\ Price =$30,000 & r>0 & ITC =0 \end{tabular} 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 1. Suppose the Price of a new machine is $10,000. Further suppose that the ENRP=$13,000 \begin{tabular}{ccccc} 6,000 & 6,000 & 5,000 & 8,000 & 7,000 \\ \hline Year 1 & 2 & 3 & 4 & 5 \\ Price =$30,000 & r>0 & ITC =0 \end{tabular} 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 correctStep by Step Solution
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