For $200,000 You Can Buy a Business That Has Steady

Multiple Choice

For $200,000 you can buy a business that has steady cash flows and low risk. Given these cash flows and level of risk, you estimate the business will earn a return in excess of its opportunity cost of money. The business

A) appears economically profitable, and strong consideration should be given to buying it.
B) looks like a break-even opportunity and should be rejected.
C) appears to be a losing proposition but should be bought anyway.
D) appears to be a losing proposition and should not be bought.