In Order to Make Worthwhile the Construction of a Bridge

question 62

Multiple Choice

In order to make worthwhile the construction of a bridge with a life of 200 years and an estimated rate of return equal to 10 percent per year the market rate of interest must be:

• A)not over 2 percent.
• B)not over 20 percent.
• C)10 percent or less.
• D)10 percent or more.
• E)not sufficient information given to answer this question.

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