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

Question 16

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.

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