Suppose a firm is considering buying a machine today at $25,000. The use of this machine in the production process of a commodity causes a firm's net income to rise by $15,000 in each of the next two years. Assume the rate of interest is 10% and the machine has no scrap value. is it desirable for the firm to purchase the machine? Explain your answer.

Answer rating: 100% (QA)

It is desirable for the firm to purchase the machine The net present value NPV of the machine ... View the full answer