Suppose a New Cost-Saving Device Will Generate $1,000 Net Savings

question 56

Multiple Choice

Suppose a new cost-saving device will generate $1,000 net savings per year to a firm.The device costs $10,000.Should the firm purchase the device?

• A) Definitely.
• B) Absolutely not.
• C) The firm is indifferent between buying the device and not.
• D) More information is required to answer.