Assume That a Firm Wants to Build a Factory That

question 155

Multiple Choice

Assume that a firm wants to build a factory that will cost $5 million. It believes that it can get a return of $600,000 in one year and then can sell the used factory for its original cost. The rate of return on this investment would be:

• A) 6 percent.
• B) 12 percent.
• C) 18 percent.
• D) 30 percent.

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Definitions:

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