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Refer to the Data Provided in Table 11 -Refer to Table 11

Question 107

Multiple Choice

Refer to the data provided in Table 11.2 below to answer the following question(s) .
Table 11.2  Total Investment Expected Rate of Return  Project  (dollars)   (percentage)   New bookkeeping software $150,0005 New tractor $200,00012 New grain storage tanks $250,00010 Irrigation system $500,00015\begin{array}{l}\begin{array} { l c c } &\text { Total Investment }&\text {Expected Rate of Return }\\ { \text { Project } } & \text { (dollars) } & \text { (percentage) } \\\hline \text { New bookkeeping software } & \$ 150,000 & 5 \\\text { New tractor } & \$ 200,000 & 12 \\\text { New grain storage tanks } & \$ 250,000 & 10 \\\text { Irrigation system } & \$ 500,000 & 15 \\\hline\end{array}\end{array}
-Refer to Table 11.2. If the interest rate is 11%, then the farmer will only


A) buy the bookkeeping software.
B) buy the bookkeeping software and the grain storage tanks.
C) buy the tractor and the irrigation system.
D) buy the tractor.

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