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Suppose a Firm Has an Investment Project Which Will Cost

Question 122

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Suppose a firm has an investment project which will cost $200,000 and result in $30,000 annual profit.The firm will not undertake the project if the real interest rate is


A) greater than 5 percent a year.
B) greater than 10 percent a year.
C) positive.
D) greater than 15 percent a year.
E) greater than 7.5 percent a year.

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