A consumer calculating the net present value of a durable goods purchase must consider

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    that they do not have to calculate the NPV if they are going to pay for the purchase out of current income or savings.
     the value of the future services the durable good will provide in addition to the future operating expenses of the good.
     adding a risk premium to the return the consumer could earn by investing in another asset such as a savings account or government bond.
     Numbers 2 and 3.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the value of the future services the durable good will provide in addition to the future operating expenses of the good.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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