Halvorson Construction Has an Investment Project That Would Cost $150,000

Multiple Choice

Halvorson Construction has an investment project that would cost $150,000 today and yield a one-time payoff of $167,000 in three years.What is the highest interest rate at which Halvorson would find this project profitable?

A) 7%
B) 6%
C) 5%
D) It is not profitable at any of these interest rates.