You are considering purchasing a refrigerator that costs $2,500 up front or $3,000 in 1 year. At what discount rate would it be a smarter deal to pay the $3,000 next year? Use Rule 72   a. 25%   b. 10%   c. 5%   d. 15%

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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You are considering purchasing a refrigerator that costs $2,500 up front or $3,000 in 1 year. At what discount rate would it be a smarter deal to pay the $3,000 next year? Use Rule 72

  a.

25%

  b.

10%

  c.

5%

  d.

15%

 
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