Biology Forums - Study Force

The table shows potential investment projects, the total investment, and the expected rate of return for each project.

Project	Total Investment	Expected Rate of Return
A — New computer network	$400,000	25%
B — New branch plant	$2,600,000	20%
C — Sales office in another state	$1,500,000	15
D — New automated billing system	$100,000	12
E — Ten new delivery trucks	$400,000	10
F — Advertising campaign	$1,000,000	7
G — Employee cafeteria	$100,000	5

If the borrowing rate is 17%, how many projects would the firm fund? What is the firm's total investment?

▸ 2 projects, $3,000,000

▸ 3 projects, $4,000,000

▸ 1 projects, $2,600,000

▸ 4 projects, $1,000,000

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