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Refer to the Data Provided in Table 11 -Refer to Table 11

Question 49

Multiple Choice

Refer to the data provided in Table 11.2 below to answer the following question(s) .
Table 11.2  Total Investment Expected Rate of Return  Project  (dollars)   (percentage)   New bookkeeping software $150,0005 New tractor $200,00012 New grain storage tanks $250,00010 Irrigation system $500,00015\begin{array}{l}\begin{array} { l c c } &\text { Total Investment }&\text {Expected Rate of Return }\\ { \text { Project } } & \text { (dollars) } & \text { (percentage) } \\\hline \text { New bookkeeping software } & \$ 150,000 & 5 \\\text { New tractor } & \$ 200,000 & 12 \\\text { New grain storage tanks } & \$ 250,000 & 10 \\\text { Irrigation system } & \$ 500,000 & 15 \\\hline\end{array}\end{array}
-Refer to Table 11.2. If the interest rate is 13%, then the farmer will engage in investment of


A) $500,000.
B) $600,000.
C) $700,000.
D) $1,100,000.

Correct Answer:

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