Question
You can earn 4% on your bank deposits, but your bank will charge you 8% to borrow money. You are considering a one-year project that
You can earn 4% on your bank deposits, but your bank will charge you 8% to borrow money. You are considering a one-year project that will cost $10,000. You have $4,000 that you can invest. What minimum rate of return does this project have to offer before you should consider investing in it?
| A) 4.0% | ||
| B) 5.6% | ||
| C) 6.4% | ||
| D) 8.01% |
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Case Studies In Finance
Authors: Robert Bruner, Kenneth Eades, Michael Schill
6th Edition
0073382450, 978-0073382456
