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JCB (Which Makes Agricultural and Construction Equipment) Has the Opportunity

Question 1

Multiple Choice

JCB (which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a R50 million return four years from now.If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project?


A) R43 456 838
B) R53 406 002
C) R34 583 902
D) R39 604 682
E) R50 000 000

Correct Answer:

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