Greg's Tasty Ice Cream Is Considering Building a New Ice

question 52

Multiple Choice

Greg's Tasty Ice Cream is considering building a new ice cream factory that costs $8.3 million.The company accountants believe that,not accounting for interest costs,building the factory will increase profits by $5 million the first year,$4 million the second year and have no value thereafter.Greg's Tasty Ice Cream should build the factory if the interest rate is

• A)3% but not if it is 4%.
• B)4% but not if it is 5%.
• C)5% but not if it is 6%.
• D)6% but not if it is 7%.

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Definitions:

Human Quality

Attributes or traits characteristic of human beings, often referring to moral, ethical, or personal values defining human nature.

Parrots

Highly intelligent birds known for their vivid colors and ability to mimic sounds, including human speech.

Crabs

Crustaceans with a broad, flat body covered by a hard shell, two stalked eyes, and five pairs of legs, the first pair often modified into pincers.

Handedness

The preference of using one hand over the other for performing tasks; this can be right-handedness, left-handedness, or ambidexterity.