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TERM 1 st: 1:50:00 Time Left:0:32:02 Doreen Zeng: Attempt 1 2 3 5 6 Question 13 (1 point) Saved The risk free rate is 10%.

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TERM 1 st: 1:50:00 Time Left:0:32:02 Doreen Zeng: Attempt 1 2 3 5 6 Question 13 (1 point) Saved The risk free rate is 10%. The real risk free rate is 5%. Machine A has an EAC (nominal) of 100. Machine B has an EAC (real) of X. Machine C has an EAC (nominal) of 400. You can run your operations using machines A and B together, or using Machine C alone. Both options produce the same revenue. For what value of X are you indifferent between both options? 8 9 11 12 350 15 300 14 150 17 18 100 None of the above W 2 w 2

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