Should he retire his machine and go out of the business

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Question: Mr. Investgood owns a coin operating game machine he bought for $4,000 three years ago. He divides the $10 a day income from the machine with the owner of the arcade. The resale value of this machine is $500. The local bank has an investment opportunity for him with 8% annual return. The threat of a new computerized game will make his machine obsolete in six months. Should he retire his machine and go out of this business?

Reference no: EM132173457

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