2 econ questions

profileButterflyPuwn

1.What is the difference between the isoquant and the production possibilities curve?

 

2. You are considering purchasing a new piece of machinery that costs $200,000.  Due to increased efficiency as a result of this investment your profit increases by $30,000 per year.  If you sell the machinery at the end of ten years for its salvage value of $20,000 what is the net present value of this investment assuming a discount rate of 6%?

 

 

    • 8 years ago
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