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As a manager of a company , you are asked to purchase a refrigerator for your company's lounge. you have narrowed the search down to 2 models. the energy efficient model sells for $1000 and will save $120 at the end of the next 3 years in electricity costs. the standard model has features similar to the energy efficient model but provides no future savings in electricity costs. it sells for $690.

Assuming that your opportionity cost funds (interest rate) is 5% which refrigerator would you buy and why?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941820

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