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

question 207

Multiple Choice

Refer to the data provided in Table 11.4 below to answer the following question(s) .
Table 11.4 $$\begin{array}{l}\begin{array} { l c c } &\text { Total Investment }&\text {Expected Rate of Return }\\ { \text { Project } } & \text { (dollars) } & \text { (percentage) } \\\hline \text { New bookkeeping software } & \$ 300,000 & 10 \\\text { New tractor } & \$ 400,000 & 24 \\\text { New grain storage tanks } & \$ 500,000 & 20 \\\text { Irrigation system } & \$ 1,000,000 & 30\end{array}\end{array}$$
-Refer to Table 11.4. When the interest rate ________, the farmer will engage in no investment.

• A) is greater than 30%
• B) is less than 10%
• C) is less than 30%
• D) is greater than 10%

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Definitions:

Break-even Point

The point at which total costs and total revenues are equal, meaning a business or project is neither making a profit nor a loss.

Marginal Cost

The additional cost incurred from producing one more unit of a product or service, which can influence production decisions.

Marginal Revenue

The augmented income earned from trading one extra unit of a product or service.

Total Revenue

The entire sum of funds a company acquires from selling goods or offering services over a specific duration.