Refer to the data provided in Table 11.2 below to answer the following question(s).
Table 11.2 $$\begin{array}{l}
\begin{array} { l c c }
&\text { Total Investment }&\text {Expected Rate of Return }\
{ \text { Project } } & \text { (dollars) } & \text { (percentage) } \
\hline \text { New bookkeeping software } & \$ 150,000 & 5 \
\text { New tractor } & \$ 200,000 & 12 \
\text { New grain storage tanks } & \$ 250,000 & 10 \
\text { Irrigation system } & \$ 500,000 & 15 \
\hline
\end{array}
\end{array}$$
-Refer to Table 11.2. If the interest rate is 11%, then the farmer will only

Question

Refer to the data provided in Table 11.2 below to answer the following question(s).
Table 11.2 $$\begin{array}{l}
\begin{array} { l c c } 
&\text { Total Investment }&\text {Expected Rate of Return }\
 { \text { Project } } & \text { (dollars) } & \text { (percentage) } \
\hline \text { New bookkeeping software } & \$ 150,000 & 5 \
\text { New tractor } & \$ 200,000 & 12 \
\text { New grain storage tanks } & \$ 250,000 & 10 \
\text { Irrigation system } & \$ 500,000 & 15 \
\hline
\end{array}
\end{array}$$
-Refer to Table 11.2. If the interest rate is 11%, 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 11%. This includes the tractor (12%) and the irrigation system (15%).

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