Suppose a handbill publisher can buy a new duplicating machine for $2000 and the duplicator has a 1-year life. The machine is expected to contribute $2180 to the year's net revenue.

Instructions:Round your answer to the nearest whole number.

a. What is the expected rate of return?

?percent.

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 itinvest in the machine if the real interest rate is 10 percent?

Yesor No.

If it is 11 percent?

NoYes.