Is it profitable to invest in the machine?

Posted on 2013-10-17 19:31:00 in Economics by SHERLY_SWEET

A machinery  which has a life of five years yields Rs. 3,000, Rs. 2,000, Rs. 1,000, Rs. 850 and Rs. 700 in first year, second year, third year, fourth year and the fifth year, respectively. Its present cost is Rs 5,000 and the market rate of interest is 5 per cent. Is it profitable to invest in the machine?

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