If a One-Year Project Costs $100,000 and Is Expected to Return

question 265

Multiple Choice

If a one-year project costs $100,000 and is expected to return the firm $105,000, the rate of return of the project is:

• A) 4.8%.
• B) 5%.
• C) $5,000.
• D) $105,000.

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Definitions:

Poorest Fifth

The segment of a population that ranks at the bottom 20% in terms of income.

Richest Fifth

The segment of a population that represents the top 20% in terms of wealth or income distribution.

Nicholas Lemann

An American journalist and author recognized for his work on issues of racism, social inequality, and the history of American education.

Ghetto

Historically, a section of a city in which members of any minority group live because of social, legal, or economic pressure.