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

question 200

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. If the interest rate is 26%, then the farmer will engage in investment of

• A) $1,000,000.
• B) $1,200,000.
• C) $1,400,000.
• D) $2,200,000.

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