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A mass-production bagel factory is considering the purchase of a flash freezer to improve the ...

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A mass-production bagel factory is considering the purchase of a flash freezer to improve the ...

A mass-production bagel factory is considering the purchase of a flash freezer to improve the quality of the raw dough it provides supermarket bakeries. The freezer costs $750,000 and would increase business revenues by $48,000 a year after all expenses besides interest are paid. If the interest rate is 7.8 percent, what is the freezer's annual profit rate?
A) 7.8 percent.
B) 1.4 percent.
C) -1.4 percent.
D) 5.9 percent.
E) -5.9 percent.

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Macroeconomics

Edition: 12^th

Author: Gordon

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