A Mass-Production Bagel Factory Is Considering the Purchase of a Flash

Multiple Choice

A mass-production bagel factory is considering the purchase of a flash freezer to improve the quality of the raw dough it provides supermarket bakeries.The freezer costs $750,000 and would increase business revenues by $48,000 a year after all expenses besides interest are paid.If the interest rate is 7.8 percent,what is the freezer's annual profit rate?

A) 7.8 percent.
B) 1.4 percent.
C) -1.4 percent.
D) 5.9 percent.
E) -5.9 percent.