11) 12) 13)

Refer to the data provided in Table 11.2 below to answer the following question(s). Table 11.2 Total Investment Expected Rate of Return Project (dollars) (percentage) New bookkeeping software $150,000 5 New tractor $200,000 12 New grain storage tanks $250,000 10 Irrigation system $500,000 15 11) Refer to Table 11.2. If the interest rate is 11%, then the farmer will only A) buy the bookkeeping software. B) buy the bookkeeping software and the grain storage tanks. C) buy the tractor and the irrigation system. D) buy the tractor. 12) Refer to Table 11.2. If the interest rate is 13%, then the farmer will engage in investment of A) $500,000. B) $600,000. C) $700,000. D) $1,100,000. 13) Refer to Table 11.2. When the interest rate the farmer will engage in no investment. A) is greater than 15% B) is less than 5% C) is less than 15% D) is greater than 5%