Consider the following two investment alternatives:Suppose that your ﬁrm needs either machine for only 2 years. The net proceeds from the sale of machine B are estimated to be $200. What should be the required net proceeds from the sale of machine A so that both machines could be considered economically indifferent at an interest rate of 10%?

Mr. Dubey • 52.26K Points
Coach

Q. Consider the following two investment alternatives:Suppose that your ﬁrm needs either machine for only 2 years. The net proceeds from the sale of machine B are estimated to be $200. What should be the required net proceeds from the sale of machine A so that both machines could be considered economically indifferent at an interest rate of 10%?

(A) 850

(B) 700

(D) 800

Correct : Option (C)