An investment will pay $289,940 at the end of next year for an investment of $190,000 at the start of the year. If the market interest rate is 9% over the same period, should this investment be made?
A) No, because the investment will yield $82,840 less than putting the money in a bank.
B) Yes, because the investment will yield $66,272 more than putting the money in a bank.
C) Yes, because the investment will yield $74,556 more than putting the money in a bank.
D) Yes, because the investment will yield $82,840 more than putting the money in a bank.
Answer: D
You might also like to view...
Discuss the two categories of sexual harassment
Which of the following is a decision-making approach that attempts to find a compromise between the two extremes posed by the pessimistic maximin criterion and the optimistic maximax criterion by applying a certain percentage weight (?) to the most optimistic outcome, and (1-?) to the most pessimistic outcome.
a. maximax criterion b. Laplace criterion c. maximin criterion d. Hurwicz criterion
In mediation, the mediator proposes a solution and makes a decision resolving the dispute.?
Indicate whether the statement is true or false
Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands): Rakes Pails Shovels Hardware AccessoriesSales to outsiders$94 $506 $44 $122 $28 Intersegment transfers 4 26 14 30 24 Interest revenue - outsiders 2 - 4 8 - Interest revenue - intersegment - 6 - - 22 Operating expenses - outsiders 116 414 40 102 26 Operating expenses - intersegment 2 20 6 16 22 Interest expense - 12 - 2 22 Income taxes (4) 10 4 6 2 Tangible assets 18 116 12 12 8 Intangible assets - - 4 8 6 Intersegment
receivables 8 6 - - - ?Which operating segments are reportable under the profit or loss test? A. Pails and Hardware. B. Rakes, Pails, Shovels, and Hardware. C. Rakes, Pails, and Shovels. D. Rakes, Pails, and Hardware. E. Rakes, Pails, Shovels, Hardware, and Accessories.