Oprah lends $150,000 for each new idea.Oprah's history is that she selects low-risk projects or ideas that hit 40% of the time.What rate of return must each successful project pay Oprah for her to break even?

Question

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The rate of return must be 150% for Oprah to break even. This is because she lends $150,000 for each new idea, and she selects low-risk projects or ideas that hit 40% of the time. This means that she will lose money on 60% of the projects she invests in. In order to make up for these losses, she must earn a rate of return of 150% on the projects that she does win.

Oprah Lends $150,000 for Each New Idea