I Am Considering a Project Which Requires an Immediate Investment

question 52

Multiple Choice

I am considering a project which requires an immediate investment of $10 000 and yields a return in two years. If I expect the rate of inflation to be 15%, how big, in actual dollars, must the return be if my real rate of return on the project is to be 20%?

• A)$13 500
• B)$13 800
• C)$14 400
• D)$18 225
• E)$19 044

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Definitions:

Homogeneous Groups

Teams or groups composed of members who share similar characteristics, backgrounds, or attributes, leading to uniformity in perspectives.

Similar Backgrounds

A condition in which individuals share common experiences, education, culture, or environment, leading to a sense of connection or mutual understanding.

Integrated Involvement

The comprehensive engagement and participation of individuals in various aspects of a system, process, or activity.

Social Isolation

A state where an individual lacks a sense of social belonging, engagement with others, and fulfilling relationships.