Refer to the Data Provided in Table 11 -Refer to Table 11

question 186

Multiple Choice

Refer to the data provided in Table 11.3 below to answer the following question(s) .
Table 11.3
Project Total Investment Expected Rate of Return
(dollars) (percentage)
$$\begin{array} { l l r } \text { New computer for sales staff } & \$ 250,000 & 11 \\\text { Remodel for distribution center } & \$ 200,000 & 9 \\\text { On-site day care center } & \$ 100,000 & 5 \\\text { Employee fitness center } & \$ 50,000 & 4\end{array}$$
-Refer to Table 11.3. If the interest rate is 10%, Blackstar Drone Manufacturing should

• A) fund only the purchase of new computers for its sales staff.
• B) fund all of the projects except for the purchase of new computers for its sales staff.
• C) fund all of the projects.
• D) not fund any of the projects.

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Definitions:

Honey

A sweet, viscous food substance made by bees from the nectar of flowers.

Expectation

The anticipation or belief regarding the future performance of the economy, markets, or individual financial assets.

CDs

Certificates of Deposit, a financial product offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period.

Price Increase

A rise in the cost of goods or services.