Exhibit 13-3 Exhibit 13-3 Gives Data on the Number

question 49

Multiple Choice

Exhibit 13-3 Exhibit 13-3 gives data on the number of tools a certain firm buys to use in its production process.Assume that the tools are expected to last indefinitely, that operating expenses are negligible, and that the price of the firm's output is expected to remain constant in the future.At what interest rate would the firm in Exhibit 13-3 choose to buy 3 machines?

• A)5%
• B)8%
• C)12%
• D)20%
• E)24%