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The table below lists all of the investment opportunities available for the businesses of a small island country. Instructions: Round your answers to 1
The table below lists all of the investment opportunities available for the businesses of a small island country. Instructions: Round your answers to 1 decimal place. a. Calculate the expected rate of return for each project. Fill in the values in the table. Project A B D E F Project Cost, Millions $15 9 27 44 7 16 million Expected Net Revenue, Millions $16 10 28 47 7.5 16.5 Rate of Return, Percent 6.7 11.1 3.7 6.8 7.0 b. If the nominal interest rate for investment borrowing is 18 percent and the expected inflation rate is 13 percent, what will be this country's level of investment?
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