You are considering two options for a new digital printing machine. Option A will last you...

You are considering two options for a new digital printing machine. Option A will last you 3 years and will cost $12,000. Option B will last 5 years and will cost $16,000. If you are planning to take a loan, at what interest rate would you be indifferent to the two options. (Hint: Use Goal Seek)

A.
31.15%

B.
8.65%

C.
18.01%

D.
9.50%

Expert Solution

by pressing the enter we will get the follwing data

the difference become zero at discount rate 31.15%

so the correct answer is A 31.15%

please ask if any query. happy to help you.

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jeff jeffy answered 1 year ago

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