Opportunity cost funds interest

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Reference no: EM136516

Q1. What factors might contribute to a low or high growth rate in a country? why do some poor countries experience higher growth rates than others when all face the same challenges?

Q2. As a manager of a company, you are asked to purchase a refrigerator for your company's lounge. You have narrowed the search down to 2 models. The energy efficient model sells for $1000 and will save $120 at the end of the next 3 years in electricity costs. The standard model has features similar to the energy efficient model but provides no future savings in electricity costs. it sells for $690. Assuming that your opportunity cost funds (interest rate) is 5% which refrigerator would you buy and why?

Reference no: EM136516

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