(Answered) A firm can purchase a new punch press for 10000 the new

Finance

A firm can purchase a new punch press for $10,000. The new press will allow the firm to enter the widget industry, and thereby earn $2,000 in profits per year forever. However, the punch press will displace several screw machines that produce $1,500 in profits per year. If the interest rate is 10%, should the new punch press be purchased?

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