If an Investment Project Costing $2,700 Was Expected to Yield

Multiple Choice

If an investment project costing $2,700 was expected to yield $1,000 (to be received at year end) for each of the next three years, a profit-maximizing entrepreneur would

A) definitely undertake the project.
B) never undertake the project.
C) undertake the project if the interest rate exceeded 12 percent.
D) undertake the project if the interest rate was 5 percent or less.