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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