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If the current inflation rate is 4% and you have an investment opportunity that pays 10%, then the real rate of interest on your investment

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If the current inflation rate is 4% and you have an investment opportunity that pays 10%, then the real rate of interest on your investment is closest to:

A) 10.0%.

B) 14.0%.

C) 6.0%.

D) 5.8%.

Use the table for the question below. Consider a project with the following cash flows in $: a Year 0 1 Cash Flow -10,000 4000 4000 4000 4000 2 3 4 21) Assume the appropriate discount rate for this project is 15%. The profitability index for this project is closest to: A).14. B).22. C).60. D).15

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