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Economics - Financial Markets
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OpenStudy (hockeychick23):
Nick runs a delivery / take-out pizza joint. He is thinking about investing in additional ovens. He thinks he can increase his net revenues by $3,000 per year with one more oven, and $4,000 per year with two. Each oven costs $20,000. What is the interest rate at which the return on the second oven would match the cost of capital?
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