Part I. Answer the following questions with a word, phrase, or number. 2. The local pizzeria is considering buying a new pizza oven. The oven maker costs $5,000. It is expected to generate profits of...

Extracted text: Part I. Answer the following questions with a word, phrase, or number. 2. The local pizzeria is considering buying a new pizza oven. The oven maker costs $5,000. It is expected to generate profits of $250 per year every year forever (in other words, using the language of the neoclassical investment model, the marginal product of capital is 5%). It depreciates in value by 3 percent per year. What is the maximum value of the interest rate for which it would be profitable for the bakery to buy the machine?