--%>

Expected rate of return

Assume a handbill publisher can purchase a new duplicating machine for $500 and the duplicator has a 1-year life.  The machine is expected to contribute $550 to the year’s overall revenue. Determine the expected rate of return?  If the real interest rate at which funds can be borrowed to purchase the machine is 8 %, will the publisher select to invest in the machine?  Describe.

   Related Questions in Finance Basics

  • Q : Assignments i want to write final state

    i want to write final state report. My state is Texas.

  • Q : Creative destruction Normal 0 false

    Normal 0 false false

  • Q : What is Budget Act Budget Act (BA): The

    Budget Act (BA): The annual statute authorizing state departments to use up appropriated funds for the aims stated in the Governor's Budget and improved by the Legislature.

  • Q : Resources flow Normal 0 false false

    Normal 0 false false

  • Q : Explain Supplement-Schedule 7A

    Supplement (Schedule 7A): In such documents, for precedent year, authorized positions symbolize the number of real positions filled for that year. For present year, authorized positions comprise all regular ongoing positions accepted in the Budget Act

  • Q : Fin 235 Personal Finance Homework Fin

    Fin 235 Personal Finance Homework Chapter 8: Problems: 1, 3, 5, 7 1.   Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If a family

  • Q : Define Appropriations Limit

    Appropriations Limit, State (SAL): The constitutional limit on the expansion of some appropriations from tax proceeds usually set to the level of the previous year's appropriation limit as adjusted for modifications in cost of living

  • Q : Define Expenditure Expenditure : The

    Expenditure: The expenditures reported on a department’s annual financial reports and “past year” budget documents comprises of amounts paid and accruals (comprising encumbrances and payables) for obligations made for the fiscal year

  • Q : Explain Fiscal Committees Fiscal

    Fiscal Committees: The committees of members in every house of the Legislature which review the fiscal impact of proposed legislation, comprising the Budget Bill. Presently, the fiscal committees comprise the Senate Budget and Fiscal

  • Q : Bg explain factors that responsible for

    explain factors that responsible for the recent surge in international market