Question
An investment will pay $292,600 at the end of next year for an investment of $190,000 at the start of the year. If the market
An investment will pay $292,600 at the end of next year for an investment of $190,000 at the start of the year. If the market interest rate is 10% over the same period, should this investment be made?
A. Yes, because the investment will yield $75,240 more than putting the money in a bank.
B. No, because the investment will yield $83,600 less than putting the money in a bank.
C. Yes, because the investment will yield $66,880 more than putting the money in a bank.
D. Yes, because the investment will yield $83,600 more than putting the money in a bank.
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