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 $545 to the year's net revenue. Instructions: Round your answer to the nearest whole number

a. What is the expected rate of return?

? b. 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? (yes or no)

Will it invest in the machine if the real interest rate is 10 percent? (yes or no)

if it is 11 percent? (yes or no )