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Suppose Colin Noel could borrow $200,000 for one year at an interest rate of 10 percent. He is virtually certain that he can invest this
Suppose Colin Noel could borrow $200,000 for one year at an interest rate of 10 percent. He is virtually certain that he can invest this money in inventory that he could sell over a year for $300,000. If his selling costs were $50,000 and he were to pay his interest out of his profits, how much would Colin Noels expected profit rate be (after the interest is paid)on his investment?
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