Asked by
La'Trell Buckner
on Dec 12, 2024
Verified
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.
Profit-Maximizing Entrepreneur
An entrepreneur who aims to achieve the highest possible profit through business operations.
Interest Rate
The percentage charged by lenders to borrowers for the use of money, or the rate earned on investments, reflecting the cost of borrowing or the yield on investments.
Investment Project
A project involving the expenditure of capital in order to generate returns or benefits over time.
- Appraise the involvement of unpredictability and danger in the selection of investments and how they affect financial outcomes.
- Learn about the principal factors and considerations that contribute to the profitability of investments.
Verified Answer
JC
Learning Objectives
- Appraise the involvement of unpredictability and danger in the selection of investments and how they affect financial outcomes.
- Learn about the principal factors and considerations that contribute to the profitability of investments.