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Assume That a Firm Wants to Build a Factory That

Question 155

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Assume that a firm wants to build a factory that will cost $5 million. It believes that it can get a return of $600,000 in one year and then can sell the used factory for its original cost. The rate of return on this investment would be:


A) 6 percent.
B) 12 percent.
C) 18 percent.
D) 30 percent.

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