Allin,
CAPITAL 1 takes in $1100. Capital 2 takes in
Costs of Materials + Profit + Depreciation
$1000 + $200 + ??
I put "question marks" for the depreciation charges since
it depends on how the machine which has a life of 10 years
is depreciated. It it is "straight line", then the ??
become $100.
John
At 06:46 PM 3/10/97 -0800, you wrote:
>> Allin suggests (OPE 4337) another way of coming at this. My
>> question to you, Allin, is "What is the rate of return for
>> CAPITAL 2?"
>
>Can I check one thing first? You mean that capitals 1 and 2
>take in gross revenues of $1100 and $2200 respectively, at
>the end of each year?
>
>Allin
>
>
>