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

question 29

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 2.5%,Blackstar Drone Manufacturing should

• A) fund all of the projects.
• B) not fund any of the projects.
• C) fund only the employee fitness center.
• D) fund all of the projects except for the employee fitness center.

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Definitions:

Money Income

It refers to the total amount of monetary earnings received by an individual or household, including wages, salaries, and other forms of financial income.

Revenues

The sum of money a business acquires from selling goods or offering services over a certain time frame.

Households

Economic units that represent all individuals living in a single dwelling, sharing income and expenses; primary consumers in the economy.

Centrally Planned Economies

Economic models in which all decisions about what to produce and how to distribute goods and services are made by the government or a central body.