Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:a. You will be opening a bakery. You decided to buy a big oven machine that costs P222,500 from a
specialty company the interest rate is 10 percent and the annual income from the investment is
P180,000. Do you think you got a good deal on the machine you bought? Why or why not?
b. What determines the equilibrium rate of interest?
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