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%.

---

Definitions:

Metabolic Activity

Processes within living organisms that involve biochemical reactions, such as digestion, respiration, and energy production.

Endocrine

Pertaining to glands that secrete hormones directly into the blood, regulating various bodily functions such as growth, metabolism, and reproduction.

Nervous

Relating to the nerves or the nervous system, responsible for transmitting messages throughout the body.

Digestion

The biological process by which food is broken down into smaller components, so the body can absorb and utilize nutrients.