Polar Water, a company that delivers bottled water, is considering three investment opportunities. The expected returns for each of the projects are as follows: buying a new delivery van, 20%; computer training for its office staff, 15%; and defensive driving training for its drivers, 8%. If the current interest rate is 10%, the firm should invest in
A) only the purchase of a new delivery van.
B) the purchase of a new delivery van and computer training for its office staff.
C) all of the projects because the average of the returns is greater than 10%.
D) only the office staff training project.
Correct Answer:
Verified
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