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A baker is considering expanding her busines by adding an additional oven to her kitchen. The new oven would cost $14,000. The baker expects the new oven to bring in additional profits of $15,800 after taking out the cost of running the oven. The baker can borrow at a nominal rate of 16% and the current inflation is 4%. Calculate threal interest rate. Should she make the investment?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9677923

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