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James Estimates His Rate of Return on an Investment to Be

Question 39

Multiple Choice

James estimates his rate of return on an investment to be 6 percent. The market rate of interest is 7.5%. We know that:


A) James should undertake the investment.
B) James should not undertake the investment.
C) James should be indifferent to the investment.
D) James must first calculate costs and benefits before deciding whether or not to invest.

Correct Answer:

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