The firm in the table below produces denim jeans and each unit of capital represents one sewing machine.The MRP for each of machines 10 through 14 is provided.Each sewing machine delivers a stream of MRPs beginning one year from now,for a total of 2 years.Assume that after 2 years each sewing machine is worth nothing.
TABLE 15-2
-Refer to Table 15-2.If the interest rate is 4%,and the purchase price of a sewing machine is $3000,what is the optimal capital stock (number of sewing machines) for this firm?
Definitions:
Reagents
Substances or compounds that are added to a system to bring about a chemical reaction or are used to test for the presence of specific substances.
Following
Pertains to the act or process of coming after something in sequence or in time.
Ethyl Propanoate
A compound formed by the esterification of propanoic acid and ethanol, known for its fruity odor.
Alcohol
An organic compound characterized by the presence of a hydroxyl group (-OH) attached to a carbon atom, widely used in industry and chemistry.
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