Economics Engineering question. Please justify it.
Homework Answers
Answer:
Given statement is true.
In a capital equipment investment project, the smallest possible rate of return is 0%
Explanation:
Rate of return = (Gain from Investment – Cost of Investment)/ Cost of Investment
Gain from Investment refers to the proceeds obtained from the sale of the investment of interest which is exactly equal to the cost of investment leads to ROR = 0%
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Economics Engineering question. Please justify it.
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