Multiple Choice
ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. The interest rate must be ________ for the firm to undertake the project.
A) at least 11%
B) no more than 9%
C) exactly equal to 10%
D) It is indeterminate from the given information.
Correct Answer:
Verified
Correct Answer:
Verified
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