You Are Thinking About Building a New Mall

question 85

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 money for 5%:

• A) you will build the mall if it costs $50 million but not if it costs $100 million.
• B) assuming conditions don't 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 don't 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.

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Definitions:

Indirect Strategy

An approach in communication where the main point or request is not directly expressed at the beginning, often used to soften the message.

Avoid Mentioning

To deliberately not talk about or reference something specific.

Unhappy Customer

A customer who is dissatisfied with a product or service, potentially leading to complaints or negative feedback.

Resolve Problems

Resolve problems involves identifying issues, analyzing them, and then implementing solutions to address those issues effectively.