Polar Water, a company that delivers bottled water, is considering three investment opportunities. The expected returns for each of the projects are as follows: buying a new delivery van, 12%; computer training for its office staff, 9%; and defensive driving training for its drivers, 8%. If the current interest rate is 7%, the firm should invest in
A. only the purchase of a new delivery van.
B. the purchase of a new delivery van and computer training for its office staff.
C. all of the projects.
D. none of the projects.
Answer: C
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A player is playing a mixed strategy when:
A. he chooses a rule to randomize over the choice of a strategy. B. he chooses a strategy without randomizing. C. there is no uncertainty in his choice. D. it is perfectly predictable.
An improvement in the technology of production for a specific good is expected to cause:
a. Higher prices and decreased quantity sold b. Higher prices and increased quantity sold c. Lower prices and decreased quantity sold d. Lower prices and increased quantity sold
A worker would be hurt least by inflation when the:
A. worker anticipates inflation and increases savings at the bank. B. worker is protected by a cost-of-living adjustment clause in an employment contract. C. price level increases but at a decreasing rate. D. worker is protected by fixed annual increases in wages and benefits in an employment contract.
A country that has had success with export-led growth policy is:
A. South Korea. B. Liberia. C. North Korea. D. Russia.