Refer to the data provided in Table 11.3 below to answer the following question(s).
Table 11.3ProjectTotal InvestmentExpected Rate of Return(dollars) (percentage)New computer for sales staff $250,00011Remodel for distribution center$200,000 9On-site day care center $100,000 5Employee fitness center$50,000 4Refer to Table 11.3. If the interest rate is 14%, Blackstar Drone Manufacturing should
A. fund all of the projects.
B. fund only the purchase of new computers for its sales staff.
C. fund the remodeling of the distribution center and the on-site day care center.
D. not fund any of the projects.
Answer: D
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A. 2. B. 4. C. 3. D. 1.
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What will be an ideal response?
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