Allied Investment Fund Lends $200,000 for Each New Idea

question 21

Multiple Choice

Allied Investment Fund lends $200,000 for each new idea.The Fund's history is that it selects high-risk projects or ideas that hit 20% of the time.What rate of return must each successful project pay the Fund for it to break even?

• A)0%
• B)100%
• C)200%
• D)400%

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Definitions:

Latching Solenoids

Electromagnetic devices that maintain their position (either open or closed) without continuous power supply.

Hydraulic Flow

The movement of hydraulic fluid through a system, which transfers energy and enables mechanical motion.

Shift Signal Valves

Hydraulic valves in an automatic transmission that regulate the flow of transmission fluid to engage different gears based on speed and load.

Forward Ratios

The gear ratios in a transmission that provide forward motion, influencing the vehicle's speed and acceleration.