You Are Thinking About Building a New Mall

question 113

Multiple Choice

You are thinking about building a new mall.Your economic consultants say the mall will bring a 7% rate of return.Because you know that you can borrow as much money as you need for 5%:

• A) you will build the mall if it costs $50 million but not if it costs $100 million.
• B) assuming conditions do not change, you will build the mall no matter how much it costs.
• C) if the rate of return falls below 5%, you will still build the mall.
• D) assuming conditions do not change, you will not build the mall because a 2% net rate of return is just too small to be worth it.
• E) if the cost of borrowing rises to 8%, you would still build the mall.

---

Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out signals to the rest of the body.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Cell Body

The part of a neuron that contains the nucleus and most of the cytoplasm and where the metabolic work of the cell is done.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.