A manufacturing company is thinking about building a new factory. The factory, if built, will yield the company $300 million in 7 years, and it would cost $220 million today to build. The company will decide to build the factory if the interest rate is
a. no less than 4.53 percent.
b. no greater than 4.53 percent.
c. no less than 5.81 percent.
d. no greater than 5.81 percent.
b
You might also like to view...
When the Fed sells government securities to a bank, how are the Fed's assets affected?
A) The amount of the Fed's government securities decreases. B) The amount of the Fed's government securities increases. C) The amount of reserves held at the Fed increases. D) The amount of reserves held at the Fed decreases.
Over 20% of high school dropouts are under the poverty line
Indicate whether the statement is true or false
The legal cartel theory of regulation argues that:
A. regulation encourages firms to inflate their production costs. B. firms in certain industries want to be regulated rather than face the rigors of competition. C. social regulation has been carried beyond the point at which marginal benefits and marginal costs are equal. D. the government is the logical agency to protect consumers from natural monopolies.
Which of the following would shift the supply curve for loans to the right, reducing short-term interest rates?
A. A reduction in discount lending by the Fed to banks B. An increase in the amount of money the Fed makes available to banks C. An increase in the desire of consumers to borrow money D. An increase in margin requirements