Refer to the data provided in Table 11.1 below to answer the following questions.
Table 11.1 $$\begin{array} { l c c }
{ \text { Project } } & \begin{array} { c }
\text { Total Investment } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Expected Rate of Return } \
\text { (percentage) }
\end{array} \
\hline \text { New notebook computer for sales staff } & \$ 500,000 & 22 \
\text { Remodel for distribution center } & \$ 400,000 & 18 \
\text { On-site day care center } & \$ 200,000 & 10 \
\text { Employee fitness center } & \$ 100,000 & 8
\end{array}$$
-Refer to Table 11.1. If the interest rate is 28%, Nashbar Bicycle should

Question

Refer to the data provided in Table 11.1 below to answer the following questions.
Table 11.1 $$\begin{array} { l c c } 
{ \text { Project } } & \begin{array} { c } 
\text { Total Investment } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Expected Rate of Return } \
\text { (percentage) }
\end{array} \
\hline \text { New notebook computer for sales staff } & \$ 500,000 & 22 \
\text { Remodel for distribution center } & \$ 400,000 & 18 \
\text { On-site day care center } & \$ 200,000 & 10 \
\text { Employee fitness center } & \$ 100,000 & 8
\end{array}$$
-Refer to Table 11.1. If the interest rate is 28%, Nashbar Bicycle should

Quizplus · Accepted Answer

The expected rate of return for all projects is below the interest rate of 28%, making them unprofitable.

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