You have an investment opportunity available to you that requires $$400,000.$ You have no funds available but you will have income of $$120,000$ this year. The investment will have a net payoff $$33,000$ at the end of the year. If the market rate is $7\mathrm{.}5\%$ will you make the investment?

Question $6$Select one:

A$.$

No$,$ because I only get $$33,000$ back on my $$400,000.$

B$.$

Yes, because I will $$3,000$ above my required return.

C$.$

No$,$ because I need $$280,000$ more than I will have.

D$.$

Yes, because the market rate is less than the borrowing rate.