Your borrowing rate is 15% per year. Your lending rate is 10% per year. The project costs
Question:
Your borrowing rate is 15% per year. Your lending rate is 10% per year. The project costs
$5,000 and has a rate of return of 12%.
(a) Should you take the project if you have
$2,000 to invest?
(b) If you have $3,000 to invest?
(c) If you have $4,000 to invest?
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