Top Posters
Since Sunday
n
6
t
5
k
4
j
4
d
4
d
4
t
4
a
4
d
4
m
4
d
4
p
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
devildoc devildoc
wrote...
Go to Answer
Posts: 166
Rep: 0 0
A year ago
Suppose a dairy farmer is considering the purchase of an additional milking machine at a price of $5000. She expects the discounted MRP of the machine in Year 1 to be $1700, in Year 2 to be $1500 and in Year 3 to be $1200, after which the machine has no value. The farmer should

▸ not buy the machine because its purchase price is $600 less than its present value.

▸ be indifferent about the purchase because its present value is approximately equal to its purchase price.

▸ buy the machine because its marginal revenue is $600 more than its marginal cost.

▸ buy the machine because its present value is $600 more than its purchase price.

▸ not buy the machine because its present value is $600 less than its purchase price.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 27 times
1 Reply
Replies
Answer verified by a subject expert
lingo94lingo94
wrote...
#1
Posts: 151
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

devildoc Author
wrote...

A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
einstein
wrote...

Yesterday
Thank you, thank you, thank you!
Shassta22
wrote...

2 hours ago
Just got PERFECT on my quiz
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1512 People Browsing
 105 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 209
  
 386
  
 1313
Your Opinion
Do you believe in global warming?
Votes: 488
Previous poll results: Which of the following is the best resource to supplement your studies: