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The table below lists all of the investment opportunities available for the businesses of a small island country. Project Project Cost, Expected Net Rate of
The table below lists all of the investment opportunities available for the businesses of a small island country. Project Project Cost, Expected Net Rate of Millions Revenue, Millions Return, Percent A $15 $16 B 9 10 C 27 28 D 44 47 E 7 7.5 16 17 Instructions: Round your answers to I decimal place. Show your Work [5 points] a. Calculate the expected rate of return for each project. Fill in the values in the table. b. If the nominal interest rate for investment borrowing is 9 percent and the expected inflation rate is 3 percent, what will be this country's level of investment? $ million
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