Top Posters
Since Sunday
16
10
m
6
t
5
a
5
m
5
J
5
d
5
t
5
r
5
j
5
a
5
New Topic  
tunisia81 tunisia81
wrote...
Posts: 67
Rep: 0 0
3 weeks ago
The table shows potential investment projects, the total investment, and the expected rate of return for each project.
ProjectTotal InvestmentExpected Rate of Return
A — New computer network$400,00025%
B — New branch plant$2,600,00020%
C — Sales office in another state$1,500,00015
D — New automated billing system$100,00012
E — Ten new delivery trucks$400,00010
F — Advertising campaign$1,000,0007
G — Employee cafeteria$100,0005
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
Textbook 

Macroeconomics


Edition: 3rd
Authors:
Read 9 times
1 Reply
Replies
Answer verified by a subject expert
dmp7474dmp7474
wrote...
Posts: 56
Rep: 4 0
3 weeks ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
2 projects, $3,000,000

The firm will fund projects with an expected rate of return higher than the borrowing rate, 17%.
In this example, the first 2 projects with a total investment of $3,000,000.
1

Related Topics

tunisia81 Author
wrote...

3 weeks ago
this is exactly what I needed
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
wrote...

2 hours ago
Thanks for your help!!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  355 People Browsing
 684 Signed Up Today
Related Images
  
 175
  
 85
  
 3
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 297