An Investment Will Pay $289,940 at the End of Next

question 88

Multiple Choice

An investment will pay $289,940 at the end of next year for an investment of $190,000 at the start of the year. If the market interest rate is 9% over the same period, should this investment be made?

• A) No, because the investment will yield $82,840 less than putting the money in a bank.
• B) Yes, because the investment will yield $66,272 more than putting the money in a bank.
• C) Yes, because the investment will yield $74,556 more than putting the money in a bank.
• D) Yes, because the investment will yield $82,840 more than putting the money in a bank.

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Definitions:

Supply Chain

A network between a company and its suppliers to produce and distribute a specific product to the final buyer, involving the flow of materials, information, and finances.

Efficiency

The degree to which an organization or process accomplishes its intended goals with a minimum of waste, expense, or unnecessary effort.

Responsiveness

The ability of a company to quickly adapt to changes in market conditions or demand.

Metric

A standard of measurement used to quantify performance, effectiveness, or efficiency in certain areas or processes.