A Manufacturing Company Is Thinking About Building a New Factory

question 12

Multiple Choice

A manufacturing company is thinking about building a new factory.The factory,if built,will yield the company $300 million in 7 years,and it would cost $220 million today to build.The company will decide to build the factory if the interest rate is

• A)no less than 4.53 percent.
• B)no greater than 4.53 percent.
• C)no less than 5.81 percent.
• D)no greater than 5.81 percent.

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Definitions:

Temperate Forests

Ecosystems located in temperate zones featuring deciduous and evergreen trees, experiencing seasonal temperature variations.

Desert Crusts

Biological crusts formed by a community of microorganisms, including cyanobacteria, algae, and fungi, which stabilize desert soils and prevent erosion.

Nitrogen Fixation

Incorporation of nitrogen gas into ammonia.

Western Coast

The land along the western edge of a continent, facing the ocean or sea.