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

question 126

Multiple Choice

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

• A)5 percent
• B)4 percent
• C)3 percent
• D)2 percent

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Definitions:

Median Value

The middle number in a sorted, ascending or descending, list of numbers and can be more descriptively considered the central value of a data set.

Average Value

The average value is a single number representing the central or typical value in a set of data, often calculated as the sum of all values divided by the number of values.

Margin Of Error

An expression of the amount of random sampling error in a survey's results, indicating the range within which the true value lies.

Sample

A subset of a population selected for measurement, observation, or questioning, to provide statistical information about the whole.