the question I have to answer is

1.Firms borrow money to finance projects they estimate will provide a return, Interest rates determine what projects will cost too much and which ones can be under taken.

a.If the prevailing borrowing rate is 5% which of the following projects can this firm undertake?

b.If the prevailing rate is 5% and they have a borrowing limit of $200 which ones will they undertake?

c.If the borrowing limit is $1,000 but the rate is 12% which ones will they undertake

Project Expected Return Initial Investment

A 12% $100

B 16% $150

C 4% $75

D 8% $30