Dobson Construction Has an Investment Project That Would Cost $150,000

question 236

Multiple Choice

Dobson Construction has an investment project that would cost $150,000 today and yield a one-time payoff of $167,000 in two years.What is the highest interest rate at which Dobson would find this project profitable?

• A)7%
• B)6%
• C)5%
• D)4%

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