Investment B will pay $205,000 in one years time for an investment of $183,000 today. If the market interest rate is 15% over the same period, which of the following statement(s) is(are) correct?

I. Reject B, because the investment will yield $5,450 less than putting the money in a bank and earning the market interest rate.

II. Accept B, because the investment will yield $5,450 more than putting the money in a bank and earning the market interest rate.

III. Reject B, because the investment return is about 3% lower than the market interest rate.

IV. Accept B, because the investment return is lower than the market interest rate.

V. Not enough information to make a conclusion.

a.

V only.

b.

I, III and IV only.

c.

II and IV only.

d.

I and III only.