An investment will pay $205,000 at the end of next year for an investment of $183,000 at the start of the year.If the market interest rate is 8% over the same period,should this investment be made?
A) No,because the investment will yield $6240 less than putting the money in a bank.
B) Yes,because the investment will yield $2360 more than putting the money in a bank.
C) Yes,because the investment will yield $4280 more than putting the money in a bank.
D) Yes,because the investment will yield $7360 more than putting the money in a bank.
Correct Answer:
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