If an Investment Project Costing $2,700 Was Expected to Yield

question 78

Multiple Choice

If an investment project costing $2,700 was expected to yield $1,000 (to be received at year end) for each of the next three years, a profit-maximizing entrepreneur would

• A) definitely undertake the project.
• B) never undertake the project.
• C) undertake the project if the interest rate exceeded 12 percent.
• D) undertake the project if the interest rate was 5 percent or less.

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Definitions:

Bid

An offer of a specified price for something, especially in contexts of auctions or competitive tenders, indicating the willingness to purchase an item or service.

Tid

An abbreviation for "ter in die," which means three times a day; commonly used in medical prescriptions.

Pc

Typically refers to a personal computer, a general-purpose device for individual use, capable of running software applications.

Sig

A term used in prescriptions, derived from the Latin "signatura," instructing patients on how to take their medication.