Refer to the data provided in Table 11.4 below to answer the following question(s).
Table 11.4 $$\begin{array}{l}
\begin{array} { l c c }
&\text { Total Investment }&\text {Expected Rate of Return }\
{ \text { Project } } & \text { (dollars) } & \text { (percentage) } \
\hline \text { New bookkeeping software } & \$ 300,000 & 10 \
\text { New tractor } & \$ 400,000 & 24 \
\text { New grain storage tanks } & \$ 500,000 & 20 \
\text { Irrigation system } & \$ 1,000,000 & 30
\end{array}
\end{array}$$
-Refer to Table 11.4. If the interest rate is 22%, then the farmer will only

Question

Refer to the data provided in Table 11.4 below to answer the following question(s).
Table 11.4 $$\begin{array}{l}
\begin{array} { l c c } 
&\text { Total Investment }&\text {Expected Rate of Return }\
 { \text { Project } } & \text { (dollars) } & \text { (percentage) } \
\hline \text { New bookkeeping software } & \$ 300,000 & 10 \
\text { New tractor } & \$ 400,000 & 24 \
\text { New grain storage tanks } & \$ 500,000 & 20 \
\text { Irrigation system } & \$ 1,000,000 & 30
\end{array}
\end{array}$$
-Refer to Table 11.4. If the interest rate is 22%, then the farmer will only

Quizplus · Accepted Answer

The farmer will only invest in projects with an expected rate of return higher than the interest rate of 22%. The tractor and the irrigation system have expected rates of return of 24% and 30%, respectively, which are both higher than 22%.

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